Banking and Finance

EREN & GONCE Law and Consultancy Office provides professional legal services in the field of banking and finance law regarding loan agreements, mortgage transactions, secured loans, and lawsuits or enforcement proceedings arising from banking disputes. Additionally, it conducts effective resolution processes for disputes arising between financial institutions and individuals or companies.

Furthermore, our office provides both litigation follow-up and consultancy services in this field. Consequently, it helps clients prevent risks that may arise from financial transactions.

WHAT IS BANKING AND FINANCE LAW?

Banking and finance law regulates the legal relationships between banks, financial institutions, and natural or legal persons transacting with these institutions. In particular, credit relationships, collateral structures, and banking transactions form the basis of this field.

Moreover, due to the complex structure of the financial system, this branch of law holds great importance for both individuals and companies, as financial transactions are only conducted safely and regularly within this legal framework.

SCOPE OF BANKING AND FINANCE LAW

Banking and finance law has a broad field of application. This scope includes the following topics:

  • Loan agreements
  • Consumer and commercial loans
  • Collateral and suretyship relationships
  • Debit and credit card transactions
  • Deposit and account movements
  • Obligations of financial institutions

In addition to this, all disputes arising from banking activities are also evaluated within this field.

LOAN AGREEMENTS AND THEIR LEGAL NATURE

Loan agreements are one of the most fundamental legal relationships established between a bank and a customer. In these agreements, the parties determine the loan amount, interest rate, maturity period, and collateral conditions.

However, banks often use standard agreements, which can create an imbalance between the parties. For this reason, customers should carefully review all terms before signing an agreement.

INTEREST RATES AND FINANCIAL OBLIGATIONS

Interest rates are among the most frequent sources of disputes in banking and finance law. Serious legal issues arise especially when banks do not make interest calculations transparent.

Furthermore, banks assume legal liability when they apply interest contrary to the agreement. For this reason, parties should always determine interest rates clearly and in accordance with legislation.

COLLATERALS AND SURETYSHIP

Banks mostly request collateral when granting loans. Customers provide this collateral in the form of mortgages, pledges, or guarantees.

On the other hand, suretyship agreements have serious consequences for individuals. Therefore, individuals should carefully evaluate the legal consequences before accepting a suretyship obligation.

RESPONSIBILITIES OF BANKS

Banks inform their customers, ensure transaction security, and keep customer information confidential. These obligations form the basis of banking activities.

If banks do not fulfill these obligations, legal liability arises. In such cases, customers may claim compensation.

BANKING AND FINANCE LAW DISPUTES

Disputes in banking and finance law generally arise for the following reasons:

  • Loan debts
  • Objections to interest and fees
  • Foreclosure of collateral
  • Conflicts regarding account movements

Parties resolve these disputes through litigation or choose alternative resolution methods.

PROTECTION OF THE FINANCIAL CONSUMER

Financial consumers are specifically protected by law. In particular, banks are prevented from applying unfair terms, and it is mandatory for the consumer to be properly informed.

Thus, the power imbalance between the consumer and the bank is reduced, and a fairer system is created.

STATUTE OF LIMITATIONS

Receivables and debts arising from banking transactions are subject to specific statute of limitations. When individuals miss these deadlines, they suffer a loss of rights.

For this reason, tracking statute of limitations correctly is of great importance.

COMMON MISTAKES

In practice, individuals often make the following mistakes:

  • Signing a loan agreement without reviewing it carefully
  • Not evaluating the responsibility of suretyship sufficiently
  • Not checking interest calculations
  • Conducting transactions without receiving legal support

These mistakes lead to serious financial losses.

WHY IS LEGAL SUPPORT IMPORTANT?

Banking and finance law has a technical and complex structure. Therefore, individuals encounter significant risks when conducting transactions without legal support.

Professional support both prevents the loss of rights and ensures the correct management of financial risks.

FREQUENTLY ASKED QUESTIONS

Is a loan agreement binding in every case?

It is generally binding; however, provisions contrary to law are considered invalid.

Is a surety responsible for the entire debt?

The responsibility is determined according to the terms of the agreement.

NOTICE

The information on this page is for general information purposes only. Every specific case should be evaluated within its own circumstances.

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