Cyprus’ Consumer Protection Service has ruled that a series of clauses included in standard mortgage loan agreements issued by Alpha Bank Cyprus are abusive under national consumer law.
The findings follow an ex officio investigation carried out under the Consumer Protection Law of 2021. As a result, the authority imposed an administrative fine of €160,000 on the bank. Alpha Bank Cyprus indicated it intends to remove the disputed clauses, a move that was considered a mitigating factor when determining the penalty.
Investigation into mortgage loan agreements
The probe focused on contractual terms used in mortgage agreements signed between the bank and consumers. The review forms part of a broader regulatory examination of lending contracts used by banking institutions across Cyprus.
According to the authority’s decision, several clauses were found to breach Articles 50 and 52 of the legislation and were deemed unfair.
These provisions relate to matters including the purpose and amount of the loan, the disbursement process, contract termination and borrower defaults, as well as the bank’s right to assign contractual rights or claims arising from the agreement.
Nearly 5,000 mortgage contracts affected
The Consumer Protection Service found that the clauses had been included in a significant number of mortgage agreements signed between 2017 and the end of 2025.
In total, approximately 4,971 consumer contracts were affected, with borrowers primarily aged between 20 and 45.
Under the decision, Alpha Bank Cyprus must cease using the specific clauses and implement measures to prevent similar breaches in the future.
Should the bank continue using the terms after a 60-day compliance period following service of the decision, it may face an additional administrative fine of €1,000 for every day the violation persists.
Bank plans contract changes
During the investigation process, Alpha Bank Cyprus informed the Protection Service that it intends to amend the disputed provisions in new mortgage agreements.
For existing contracts, the bank said it plans to notify affected borrowers and waive any rights deriving from the contested clauses.
