Our Blog

Imposition of a fine of 170,000 euros in Bank of Cyprus for unfair commercial practices

Source: Cyprus Mail

An administrative fine of € 170,000 was imposed by the Consumer Protection Agency at Bank of Cyprus for unfair commercial practices. The relevant announcement reads as follows: "The Consumer Protection Service announces the adoption of an administrative decision against Bank of Cyprus for breach of the Unfair Commercial Practices of Businesses to Consumers Law. The decision concerns an own-initiative inquiry carried out by the Office in relation to bank practices in consumer mortgage contracts. The Office, exercising the powers granted to it in

accordance with the Law, has found violations of Articles 4 and 6 of the Law, which consist of the following unfair commercial practices: Using unclear contractual terms that allow the bank to unilaterally change interest rates and other charges borne by the consumer. Use of unclear contractual terms for imposing charges, costs, costs without analysis to consumers. Provide unclear and incomplete information about the terms and the total prepayment cost of the loan. Connection of the loan contract to an insurance contract - dependence of the loan agreement on the payment of premiums, using unclear contractual terms. Unilateral modification of loan repayment time without a contractual right and commencement of a contract review procedure for return to the previous situation. In view of the above, the Service: ordered the Bank to terminate the violations found and to avoid repeating them in the future and imposed on the Bank an administrative fine of € 170,000 ". The aforementioned decision is listed here.