A TRADE UNION, representing small businesses and the self-employed operating under the name of SYMEA, is taking local banking institutions to court, protesting excessive charges on loans, on current accounts and on credit cards, according to Andreas Alambritis, SYMEA president.
“We have agreed with our lawyers to take our grievances to court against all licensed credit institutions for illegal additional fees they have been charging over the years, which must be revoked so that we can have a clear picture of the balance on each account,” Alambritis told CNA today, adding that this would help borrowers as well as the banks themselves.
Filing a law suit against the banking institutions would block repossession of mortgaged properties for as long as the case is before the court, he explained.
The government is working for the approval of a bill on foreclosures, a prerequisite for the next tranche of a 10 billion bailout Cyprus’ international lenders have agreed to provide. The bill has to be approved by the House of Representatives in the coming weeks and before the next Eurogroup meeting. Parliamentary parties have warned that unless substantive changes are introduced to the existing bill to protect the ordinary citizen who has been affected by the financial crisis, they will reject it.
“No property can be repossessed if legal proceedings are underway,” SYMEA president said, noting that even if the draft legislation on foreclosures is approved, it would essentially be ineffective because of the lawsuits.
Replying to questions, he referred to tens of thousands of cases which could find their way before the courts, adding that priority will be given to cases relating to non-performing loans and to current accounts which are in overdraft.
SYMEA was set up in April this year with a view to protecting and safeguarding the interests of small businesses and the self-employed in Cyprus. It also aims to secure lower interest rates and seeks to freeze for a year all loans small businesses and their shareholders have taken out.
Source: Cyprus News Agency