Introduction

Transparency and accuracy are essential in debtor-creditor relationships. However, in some cases, creditors may initiate enforcement proceedings as if the entire debt were unpaid, even though part of the debt has already been settled. This situation has been evaluated by the Court of Cassation and characterized as malicious conduct. In this article, we examine the issue in light of the Court of Cassation, 15th Civil Chamber’s decision numbered 2019/2681 E. and 2020/370 K.

Summary of the Decision

In its ruling, the 15th Civil Chamber of the Court of Cassation considered the initiation of enforcement proceedings as if the entire debt were unpaid, despite partial repayment, as an act of “bad faith.” The Court emphasized that such conduct could cause both material and moral harm to the debtor and therefore ordered compensation for bad faith.

What is Bad Faith Compensation?

Bad faith compensation is a sanction imposed on individuals who knowingly and deliberately act contrary to the truth in an unlawful manner. Such compensation aims to protect the rights of the party who suffers damage unjustly.

In the decision in question, it was stated that pursuing enforcement for the full amount of a debt that had already been partially repaid caused harm to the debtor and constituted an example of bad faith. This includes not only compensation for material damages but also moral satisfaction.

Legal and Practical Consequences of This Decision

• Creditors’ Responsibility: Creditors must declare the actual status of the debt fully and accurately. Otherwise, they may face legal sanctions.

• Protection of Debtors’ Rights: Debtors confronted with such unfair practices may claim bad faith compensation. This helps them recover both their economic and moral damages.

• Establishment of Justice: This ruling ensures the protection of debtors who attempt to settle their debts legally, preventing arbitrary conduct by creditors.

Conclusion

This decision of the Court of Cassation once again underlines that creditors must act with honesty and accuracy when initiating enforcement proceedings. If part of a debt has been paid, this fact must not be ignored, and debtors should not be subjected to unnecessary hardship. The ruling carries important lessons for both creditors and debtors, highlighting the importance of a fair legal system.

This article serves as a guide for those seeking legal knowledge. For more detailed information on bad faith compensation and debtors’ rights, it is recommended to consult a legal professional.