The indebted consumer: A microsociological analysis of the non-performing loan market

Despite efforts, default remains a reality of credit relations, leading to the emergence of non-performing loan (NPL) markets. In these markets, specialized firms purchase bad loans at discounted rates, aiming to collect debts or resell them. With unsecured consumer credits comprising a significant portion of NPL purchases, the exponential growth of the consumer credit market in Türkiye has exacerbated NPL issues. Following the 2001 banking crisis, the Savings Deposit Insurance Fund facilitated the sale of NPLs to asset management companies (AMCs), a practice later adopted by private banks. Defaulted borrowers lack control over the sale of their debts, often experiencing persistent contact from AMCs offering assistance. However, complaints regarding the quality and language of AMC services persist, underscoring issues of stigmatization and harassment. Drawing on netnographical research and discourse analysis, this study examines the Goffmanesque frames through which AMCs restructure (in)formal default patterns in personal debt relations during NPL restructuring.