Alpha Bank Cyprus Fined €160,000 for Unfair Mortgage Clauses

The Consumer Protection Service of Cyprus has identified several mortgage contract clauses used by Alpha Bank Cyprus as unfair under the Consumer Protection Law of 2021, resulting in a €160,000 fine for the bank. This ex officio investigation scrutinized common terms included in mortgage loan agreements and concluded that these clauses infringe national consumer rights.

Scope and Findings of the Investigation

The review focused on mortgage agreements issued primarily between 2017 and 2025. The findings pinpointed specific clauses violating Articles 50 and 52 of Cyprus consumer legislation. These clauses pertained to critical elements such as the loan’s purpose and amount, the disbursement process, contract termination conditions, borrower defaults, and the bank’s right to assign contractual claims.

Approximately 4,971 mortgage contracts were affected, predominantly held by borrowers aged 20 to 45 years old. In addition to the monetary penalty, the bank is mandated to immediately stop using the problematic clauses and put safeguards in place to avoid similar breaches in future contracts.

Consequences and Compliance Measures

Alpha Bank Cyprus has committed to eliminating the disputed terms in forthcoming mortgage agreements. For existing contracts, the bank plans to inform borrowers directly and waive any enforcement rights linked to these clauses. Failure to comply within the 60-day deadline after the decision could incur daily fines of €1,000 until rectification.

This development highlights the increasing regulatory scrutiny over mortgage lending practices in Cyprus, reflecting a stronger stance on consumer protection.

Why This Matters for Property Buyers

If you are currently exploring mortgage options, it’s essential to carefully review contract terms and understand your rights. Cyprus’ property market continues to evolve with more transparent lending practices expected. Those interested in acquiring cheap apartments for sale in Cyprus or browsing affordable houses and villas should stay informed about the potential implications of mortgage contract terms.

At INDEX.cy, we strive to provide detailed, data-backed insights to help you navigate the Cypriot real estate market without bias or unnecessary hype.