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Cyprus CPS fines banks €1.4 million for unfair contract clauses

By Nigel Howarth- September 23, 2025

Cyprus Consumer Protection Service fines banks 1.4 million Euro.

The Bank of Cyprus and Eurobank (formerly Hellenic Bank) must amend thousands of mortgage agreements after rulings by the Cyprus Consumer Protection Service (CCPS). The two banks were fined €1.4 million after more than 22,000 contracts were found to contain unfair terms.

For the Bank of Cyprus, the decision concerns 14,810 loans concluded since June 2021, mostly with consumers aged 20–45. The contested clauses involved the right of retention, account consolidation and set-off, customer notification obligations, and property revaluation costs.

The Bank has agreed to bring these terms into line with legislation, showing willingness to safeguard consumer rights. The CCPS noted improvements in wording and transparency in revised contracts and considered the Bank’s cooperation as a mitigating factor.

The Bank of Cyprus has been ordered to stop using the clauses within 60 days and avoid reinstating them in future agreements. It was fined €800,000, plus €1,000 for every day of continued use after the deadline.

In the case of Eurobank (formerly Hellenic Bank), 7,456 housing loans issued since August 2022 contained unfair terms on repayment methods, collateral, insurance, base interest rates, fees, reporting obligations, events of default, set-off, lien, and general conditions. The CCPS ruled these breached Articles 50 and 52 of the 2021 Consumer Protection Law, stressing that their repeated use in long-term contracts created financial strain for borrowers while benefiting the Bank. This was treated as an aggravating factor.

Mitigating factors included lack of fraud, no evidence of intent to exploit vulnerable groups, and the Bank’s cooperation. Eurobank also proposed amendments to comply with the law. As with Bank of Cyprus, the Service acknowledged improvements in clarity and transparency in revised terms.

Eurobank has been ordered to cease use of the clauses within 60 days, including in existing agreements. It was fined €600,000, plus €1,000 per day for any continued application.

According to the CCPS, both decisions aim to ensure compliance with consumer law, improve transparency in mortgage contracts, and strengthen protection for thousands of borrowers.

Source Cyprus Property News