THE BANK OF CYPRUS has been hit with an administrative fine of €170,000 by the Cyprus Consumer and Protection Service (CCPS) for using vague terms that allowed it to unilaterally amend interest rates and other charges.
In its 22 page ruling the service said the bank used vague contractual terms that allowed it to unilaterally amend interest rates and other charges burdening the consumer and providing vague and inadequate information regarding the terms and cost of prepaying a loan.
The Bank of Cyprus (BoC) also linked the loan agreement with an insurance agreement, making the loan dependent on the payment of an insurance premium using vague terms, the service said.
It also unilaterally changed the loan repayment period without affording the right to revert to the previous state of affairs.
The consumer service fined BoC €170,000 and ordered the bank to cease enforcing the practices in question and avoid repeating them in the future.
CCPS Letter to Complainant (English)