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Co-ordinated action at European Court of Justice

Action focussing on the systemic failings of banks in their mis-selling of Swiss Franc loans is being taken at the European Court of Justice to pursue a claim for damages against the responsible European authorities.

European Court of JusticeTHE ASSOCIATE firms of The Anglo-Hellenic & Cypriot Law Association, including prominent firms such as Highgate Hill Solicitors and Alexandrou Law Offices, have begun accepting instructions (indeed they have so far received over 400 instructions) from people who have been missold Swiss Franc loans, attached to off-plan property in Cyprus, in a co-ordinated move to bring a direct action at the European Court of Justice.

The action focuses on the serious systemic failings in the Banks, which led to the misselling of these foreign exchange loans. Particularly as regards the obligations of the Banks, as provided for under European Law, such as their failure to advise on the inherent risks of that particular type of investment, provide clear information generally, assess the appropriateness of the investment for the each individual retail client and to take reasonable steps to achieve the best possible result for the clients.

The action will also seek to highlight the significant regulatory failings that allowed the misselling to take place, and pursue a claim for damages against the responsible European authorities.

There is no a strong movement growing across Europe against foreign exchange loans. This year there has been great strides taken, by the Courts, in the Balkan states:

  • In Croatia there has been a favourable judgment in the Court of First Instance which is now on Appeal.
  • In Montenegro there has been a favourable judgment at the Court of Appeal.
  • In Bosnia, where it is only legal to provide foreign exchange loans to businesses, the Courts have also ruled favourably, when such loans were being provided to retail clients.
  • Now in Hungary the Prime Minister, and the Ministry of Justice, have asked the Supreme Court to rule on the matter, and a favourable judgment is expected shortly.

It is currently estimated that there are approximately 70,000 litigants across Europe, on the issue of loans linked the Swiss Franc alone, with many thousands that have not yet begun to approach the Courts.

It is now a pan-European problem in need of a pan-European solution, which should begin with a ruling from the European Court of Justice to give fair and certain redress across the entire Union, and by holding the regulators to account can help ensure that it does not happen again.

While bringing an action against the regulators will not rescind the contracts it provides the now impecunious victims of these foreign exchange loans another avenue to pursue for compensation, for the damage that they have suffered.

Any persons interested in this should contact hellenic@btinternet.com for more details.

Readers' comments

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  • MarkD says:

    @Mike whilst I agree with you, if I could recoup half of what my Swiss franc mortgage cost me I would be extremely happy. It would go someway to ease the utter dislike I have for this Islands institutions !

  • Pete says:

    “The Anglo-Hellenic & Cypriot Law Association, including prominent firms such as Highgate Hill Solicitors and Alexandrou Law Offices, have begun accepting instructions”

    These companies are all run by Katherine Alexander Theodotou although she sometimes changes her name to Alexandrou.

    Anyone using this woman should know there are a number of very unhappy people in Cyprus who paid their money only to have the goalposts moved midway through the proceedings. If you want to know more I suggest you contact her and see if you get a response. We’re still waiting.

  • Mike says:

    Robert – I fear the big shots and their pals will be sleeping very soundly in their beds without a care in the world. I may be an old cynic but I just can’t help feeling that the Banks or financial institutions who arranged these loans will defend themselves by stating that all they did was arrange what they were instructed to arrange by the buyer or their agent or lawyer. I hope not but historically, other than for a mild slap on the wrist, very few financial institutions are penalised to any significant degree or made to suffer and when they are they recover their fine from depositors / investors within days. We only need to look at the penalties imposed for the numerous misselling issues in UK to realise the penalties, although large to us as individuals, are mere drops in the Ocean in terms of Bank assets.

  • Robert Briggs says:

    The Wheels of Justice, perchance are now grinding away in these matters, as per the above issues & the Title Deeds frauds, in particular those banks initiating foreclosure procedures against the Folks, who have already paid in full to the developers!

    So the EC will be proved either to be fit for purpose, or not fit for purpose?

    I would love to see these banks involved in this disgrace, get their comeuppance & I do hope the big shots and their pals, in these financial institutions are having sleepless nights.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

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