The Cyprus Consumer Association this week urged individuals with consumer loans issued since July 1997 to take action against potential abusive terms in their agreements.

It advised loan holders to file complaints with the Consumer Protection Service, operating under the Ministry of Energy, Commerce, and Industry, as well as with the Financial Ombudsman.

In an official statement, the association reminded the public of its ongoing efforts to address unfair clauses in loan contracts, highlighting its latest announcement dated July 8, 2024.

The association said that since May 2021, under Law 112(I)/2021, decisions made by the Director of the Consumer Protection Service are enforceable and allow for penalties amounting to millions of euros.

It added that the new powers of the Consumer Protection Service are retroactive to July 1997, contrary to the service’s previous stance that the provisions did not apply retroactively.

The consumer association also stressed that loan holders who suspect abusive terms in their agreements should lodge complaints with the Consumer Protection Service, which is legally obliged to investigate and impose penalties if violations are confirmed.

Additionally, the association urged consumers to also report concerns to the Financial Ombudsman, especially if they believe unfair terms have led to overcharges.

The association further explained that the Ombudsman’s office examines both performing and non-performing loans.

“The Cyprus Consumer Association reiterates, yet again, that it is time for the Consumer Protection Service to understand its purpose and role,” the association said.

“It must stop giving the impression that it supports the interests of banks,” it added.

“It is the consumers who need support, not the banks,” the statement concluded.