AFTER many years of painful Litigation against the Developers and Banks in Cyprus and other countries, we have identified that the conduct of the Banks has been a major problem. In Cyprus the Banks were lending money, as part of a joint investment package with the Developers, without any objective criteria accounting for:
- the risk of currency fluctuation;
- the real value of the property against which the loan was secured;
- the financial health of the Debtor;
- the financial health of the Developer;
- their own financial health;
- the overall financial viability of the developments; and
- the damage that any relevant party might suffer if the Developer delayed construction.
Certain Banks are, publically, offering their now impoverished clients a resolution. A 20-30% reduction on the current outstanding balance of the loan. Is this a reasonable offer? We believe it is not, because:
- those with loans in Swiss Francs or other currencies have seen the sterling equivalent of their loan balloon astronomically;
- most properties were initially overvalued by 15-20%; and
- today the properties have depreciated in value by as much as 50% of what would have been the real purchase price.
This leaves the poor consumer with a negative equity on the property of as much as 70%, if not more, of what they paid for it. A reduction of 20-30% of the current outstanding balance therefore represents a token gesture on the part of the Banks while still keeping themselves in profit. Would it not be fairer that they who invested in these schemes as much as the consumers bear at least some of the losses? Should they who took as much risk as the consumer not bear their fair share of that risk? Isn’t it right that they who did not act with due diligence pay for their own errors?
Many of the Developers are now on the verge of bankruptcy, and the Banks will very soon move in to wind these firms up and take their assets. It is clear from what is emerging that the Banks had been lending to Developers who did not have the resources or competence to follow through on their projects and offer their products at a fair price.
The result of these bankruptcies, inevitably, is that the purchasers will be left high and dry as unsecured creditors and expected to foot the bill for the Developers’ debt. The title deeds to these properties are being held in the clutches of the Banks and held to ransom. This has the purchasers trapped into being liable for assets that they do not own.
The consumer is in very real danger of being crushed, under the system, as the continuous economic expansion based on false economies grinds to a halt, and held prisoner with bankrupt Developers by bankrupt Banks who are in turn held by the Troika.
The Anglo-Hellenic & Cypriot Law Association and its members, predominantly Highgate Hill Solicitors and Alexandrou Law Offices are now organising the biggest action against the unfair loans at the English High Court and the European Court of Justice.
The Legal Teams of both firms include some of the most famous names in European litigation.
The Costs are low and take in mind the financial situation of the Clients and, uniquely amongst the Legal Profession, payable by instalments. It is advisable that you register your action before the bankruptcy of your Developer and prior to you being sued by your Bank, otherwise you may not be able to present an arguable case at the High Court in England or at the European Court of Justice.
The Anglo-Hellenic & Cypriot Law Association has been inundated with applications to join the new action group. While actions are already in progress at the High Court the deadline for new applicants will be extended until 10 March 2014.
Please contact the Anglo-Hellenic & Cypriot Law Association on:
(0044) 0207 263 6445
00357 99 128 47