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Jewelers return POS machines after installment ban

February 4, 2014

ISTANBUL (CIHAN)- After a ban on installment plans for jewelry purchases went into effect on Monday, jewelers have started to return some of their point-of-sale (POS) machines to banks in order to avoid paying fees associated with the devices amid decreasing sales. President of West Anatolia and Izmir Jewelers Chamber Yilmaz UÇa said on Tuesday that credit card purchases on installment plans accounted for 70 percent of turnover in jewelers' shops, adding that the new regulation is harming sales. Starting Feb. 1 , the Banking Regulation and Supervision Agency (BDDK) banned installment plans for food, gasoline, telecommunications and jewelry purchases and limited the option to nine installments for all other purchases, as per new credit card regulations. The regulation also states that mortgages cannot exceed 75 percent of the value of the house in question, and that for cars valued at less than TL 50,000, the total to be repaid cannot exceed 70 percent of the car's value. According to the regulation, non-mortgage consumer loans are limited to a period of 36 months and car loans cannot exceed 48 installments. The regulation is expected to limit installments for online sales as well. UÇa said that the negative effects of the ban on installment plans were apparent on the very first day of the new rules, warning that if the ban remains in force some jewelry shops would have to close very soon. (Cihan/Today's Zaman) CIHAN

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Source: Cihan News Agency (Turkey)

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