Debt Collection in Turkey is a relatively new business activity. Commercial actors in Turkey have not been very familiar with collection companies until recently. Payment issues were either being fought over in the Courtroom with lengthy procedures, or they were being solved on a personal note.

Implementation of European Regulations

Since the EU accession negotiations for Turkey had started in November 2005, various initiatives have been launched to raise awareness amongst business owners on 'late payments'. For example in November 2007, the European Commission organised a meeting in Ankara with as main aim to expose to Turkish enterprises and public authorities the direct effects of the EU's late payment Directive 2000/35 (EC/EP). This meeting informed Turkish actors on the effect of the Regulation on the competitiveness of companies and the relation to insolvencies in the European market. But it also covered issues as the calculated default interest rate, cost of recovery, contractual abuses, retention of title etc. In the field of commercial transactions the current legislation in place includes the 'Law on Obligations', the 'Commercial Code', the 'Law on Legal Interest and Default Interest', and the 'Enforcement and Bankruptcy Law'. These are all largely conform the "EU Council Directive on late payments (2005/35/EC, the 'late payments Directive'), but further alignment is still needed (EU Commission Screening Report 2008). Implementing of coherent legislation in Turkey is one step, but letting it materialize and let companies get used to it demands considerably more time and effort.

Effectiveness of Amicable Debt Collection in Turkey