What is a Consumer Promissory Note? According to Law No. 6502, which transactions are considered "Consumer Promissory Notes"?
Entrance
In Turkish law, consumer promissory notes, designed to secure consumer transactions and the claims arising from these transactions, have gained significant protection under Law No. 6502 on the Protection of Consumers (TKHK). Signing promissory notes is a common practice, particularly in beauty salons, private schools, gyms, and similar sectors. However, not all promissory notes have the same legal validity. The law has introduced various limitations in favor of the consumer.
This article will detail the definition and legal nature of consumer promissory notes, the transactions under which they can be issued, and the problems encountered in practice. Furthermore, a fictional case study will illustrate how this concept manifests in practice.
Definition of a Consumer Promissory Note
A consumer promissory note is a negotiable instrument issued within the scope of a consumer transaction and received by the creditor from the consumer. Article 4/5 of the Consumer Protection Law explicitly states that, "Negotiable instruments received in consumer transactions are invalid unless it is explicitly stated that it is a consumer transaction.".
Accordingly:
-
The consumer promissory note must include the statement, "This note has been issued due to a consumer transaction.".
-
A promissory note that does not contain this statement is considered invalid.
-
The aim is to protect consumers from the strict and swift penalties of commercial law.
Areas Where Promissory Notes Can Be Issued Within the Scope of Consumer Transactions
According to Law No. 6502, consumer transactions are the provision of goods or services to a consumer by a seller/provider acting for commercial or professional purposes. Within this scope:
-
Beauty salon contracts (hair removal, skin care, cosmetic services),
-
Private school and course contracts (registration fee, annual fee, additional services),
-
Gym membership agreements,
-
Private healthcare services (check-ups, cosmetic surgery, dental treatment, etc.),
-
Holiday packages and travel contracts
Transactions such as these are considered consumer transactions, and promissory notes issued within this framework are also accepted as consumer promissory notes.
Formal Requirements for Consumer Promissory Notes
For a bill of exchange to be valid as a consumer bill of exchange:
-
It must be based on a consumer transaction (e.g., a beauty salon service).
-
The promissory note must clearly state "issued due to a consumer transaction.".
-
The promissory note must be drawn up in accordance with the formal requirements stipulated by law.
-
Blank promissory notes should not be accepted from consumers; otherwise, they may be considered invalid.
Differences Between Consumer Promissory Notes and Bills of Exchange/Bills of Exchange
-
Promissory notes and bills of exchange are negotiable instruments regulated under the Turkish Commercial Code and have high validity among merchants.
-
A consumer promissory note can only be issued for consumer transactions and must explicitly state "consumer transaction".
-
The purpose of consumer promissory notes is not to enable swift enforcement proceedings, but to protect the consumer.
Fictional Event
Case:
A business called "X Beauty Center" sold a laser hair removal package to customer A. The package cost 30,000 TL. To secure the payment, the business had the customer sign a promissory note. However, the note does not state "issued due to consumer transaction."
After some time, Person A became dissatisfied with the service and wished to terminate the contract. The beauty center, however, initiated enforcement proceedings to collect the debt.
Legal Status:
-
This promissory note is invalid because it lacks the required consumer endorsement.
-
A. The individual may object to the enforcement proceedings within the prescribed time limit, arguing that the promissory note falls within the scope of a consumer transaction and should be considered invalid because it lacks the necessary wording.
-
Ultimately, since the consumer promissory note is invalid, the business can only collect the debt through a simple debt collection lawsuit.
Common Problems Encountered in Practice
-
Signing a blank promissory note: It is common for consumers to sign promissory notes with the date, amount, or description sections left blank. In this case, the note may be considered invalid.
-
Multiple promissory note practice: Some businesses issue multiple promissory notes for monthly installments instead of a single note for the total debt. This can have disadvantageous consequences for the consumer.
-
Authorization agreements: Authorization agreements that are detrimental to the consumer are often invalid.
-
Pressure from debt collection: Businesses try to force consumers to pay by threatening them with swift debt collection. The Consumer Protection Law provides protection against this.
Consumer Rights
The consumer has the following rights regarding the promissory note:
-
Right to object: You can object to the enforcement proceedings within the prescribed time limit.
-
Defense of invalidity: If the promissory note does not bear a consumer endorsement, the consumer can argue that the note is invalid.
-
Application to the consumer arbitration board: If the dispute is within the monetary limit, an application can be made to the arbitration board.
-
Right to terminate and receive a refund: The contract can be terminated due to defective service, and a refund can be requested.
Conclusion
A consumer promissory note is a special provision in consumer law that protects consumers from the severe consequences of negotiable instrument law. The requirement for explicit wording, introduced by Law No. 6502, is mandatory to prevent consumers from being subjected to enforcement pressure. Therefore, consumers must always check whether a "consumer transaction" annotation is present when signing any promissory note. For businesses, promissory notes issued illegally will not yield results in future enforcement proceedings and will make debt collection more difficult. Therefore, it is of great importance for both consumers and businesses to act consciously in this regard.
Gamze Akbulut, Law Faculty Student
About Post Author
