Alpha Bank Cyprus fined 160,000 euros over abusive mortgage terms

On March 9, the Cyprus Consumer Protection Service imposed a fine of 160,000 euros on Alpha Bank Cyprus due to the inclusion of abusive terms in standard mortgage loan agreements. The authority found that these clauses created a significant imbalance between the bank's rights and those of the borrowers. Specifically, the bank allowed for unilateral changes to interest rates and calculation methods without objective criteria. Furthermore, the contract permitted the bank to merge customer accounts without notice and treat undelivered mail as received. Additional problematic terms included shifting unlimited property revaluation costs to consumers and arbitrary authority to terminate agreements for undefined breaches. The service ordered the immediate removal of these specific clauses from all contracts. Alpha Bank's willingness to amend or delete the disputed provisions was acknowledged by the regulator as a substantial mitigating factor in the final decision.