CBC received 154 bank customer complaints in 2024

The Central Bank of Cyprus (CBC) and its financial ombudsman service received 154 formal complaints from bank customers in 2024, according to the CBC’s annual report.

The majority of these complaints, the CBC report showed, related to credit facilities and loan restructuring procedures.

However, despite the aforementioned number of people turning to the CBC for assistance, this still marks a decline from the 180 complaints recorded in 2023.

In more detail, 75 complaints, or 49 per cent of the total, concerned credit facilities in 2024. Of these, 25 focused specifically on loan restructuring practices.

In comparison, 96 such complaints were submitted in 2023, representing 54 per cent of that year’s total, with 65 directly involving restructuring procedures.

Despite the volume of issues raised, few complainants opted to pursue their case through the internal dispute resolution committees of credit institutions or loan-acquiring companies.

Likewise, the number of individuals who exercised their legal right to appoint a mediator in 2024 remained very low.

Payment processes were another frequent source of dissatisfaction. Twenty complaints, or 13 per cent of the total, addressed payment procedures.

Meanwhile, 13 complaints, representing 8 per cent, concerned the opening or termination of basic bank accounts.

In 2023, the figures for these categories were 31 complaints (17 per cent) and 22 complaints (12 per cent), respectively.

The Central Bank clarified that its complaint-handling procedures are separate from the internal complaint systems of supervised institutions and from out-of-court settlement processes handled by alternative dispute resolution entities, such as the financial ombudsman.

As part of its regulatory role, the Central Bank holds the authority to investigate breaches under laws where it is the designated competent authority and, when applicable, to take supervisory actions or impose penalties.

The bank’s oversight includes matters of financial conduct arising from the provision of mortgage loans and the restructuring of credit facilities within the framework of the Central Bank’s Arrears Management Directive.

It also covers access to basic payment accounts, the delivery of payment services, and the provision of investment services by credit institutions.

In March 2024, the Central Bank hosted a training seminar for mediators registered in its credit facility restructuring mediator registry.

A total of 36 participants attended the event, which was organised under the bank’s legal remit to provide such training pursuant to national legislation governing the operation of the Single Body for Out-of-Court Dispute Resolution of Financial Nature.

It should be noted that a key tool used by the financial ombudsman service is an online reporting mechanism hosted on the Central Bank’s website.

This platform allows for anonymous or named submissions of suspected violations by regulated financial institutions, whether by customers or employees.

These reports contribute to the bank’s broader consumer protection and financial conduct oversight.