New decisions are expected soon from the Consumer Protection Service concerning unfair terms in mortgage loan contracts across Cyprus’s banking sector.
Speaking on the morning radio show Proini Epitheorisi with Katerina Iliadi, the Director of the Service, Kostas Karayioryis, confirmed that more investigations are underway and that further rulings will follow.
The announcement comes after two major fines were issued — €800,000 against Bank of Cyprus and €600,000 against Eurobank (formerly Hellenic Bank) — over unfair contract terms found in their mortgage agreements. These are among the largest penalties ever imposed in Cyprus for such violations.
Daily fines unless terms are amended
The two banks have been given two months to amend the problematic clauses. If they fail to comply, an additional daily fine of €1,000 will be imposed until they meet the requirements.
“Our aim is transparency and consumer protection,” said Karayioryis, adding that affected borrowers can pursue legal action individually if they believe their financial interests have been harmed.
He also confirmed that the Service is currently examining mortgage contracts from all financial institutions dating back to 2021, and that early findings already indicate the presence of unfair terms in other contracts as well. More decisions will follow in the coming weeks.
Consumer group welcomes action, calls for legal reform
The Cyprus Consumers and Quality of Life Association welcomed the rulings, calling them a significant step forward for consumer rights. However, the association also urged the government to improve legislation protecting consumers from abusive financial practices.
“These decisions are important not only because of the fines imposed, but because they highlight the systematic use of unfair terms by both banks in their contracts with consumer borrowers,” the group said in a statement.
They noted that, based on the Consumer Protection Service’s announcements, the contracts in question appear to affect a large number of borrowers over many years.
Advice for affected borrowers
The Association is encouraging any borrower with a mortgage contract from either Bank of Cyprus or Eurobank to contact the Consumer Protection Service to find out whether their contract is affected.
If so, they can seek guidance on how to respond and whether to pursue compensation.
