FAQ’s

The Financial Commissioner (Ombudsman) is an independent institution that examines consumer complaints (natural and legal persons) against financial enterprises such as banks, credit acquisition companies, investment companies, insurance companies, etc.

The Financial Commissioner (Ombudsman) may examine complaints related to:

• loans, whether they are performing or non-performing,
• bank accounts (current, savings, cards, etc.),
• credit and debit cards,
• investment accounts and investment services,
• insurance products.

Examples of complaints

For Licensed Credit Institutions (ACI) and Credit Acquisition Companies (CACs)

• Excessive charges resulting from illegal interest rate changes (base rate and margin), abusive clauses or illegal charges of expenses and commissions.
• Non-transparent practices.
• Transaction disputes.
• Early loan repayment.

For investment companies (CIFs)

• Aggressive sales tactics / misleading information.
• Providing incorrect investment advice.
• Incorrect assessment of the consumer’s suitability for investment.
• Incorrect classification of a client as a professional investor.
• Provision of unsuitable financial instruments or investment services to the consumer.
• Failure to execute an order.
• Incorrect execution of transactions.
• Inability to access the account.
• Expenses/charges.

For Insurance Companies 

• Complaints regarding home, life, health, car, travel insurance, etc.
• Non-payment of a claim.
• Buyout of an insurance policy.
• Unilateral cancellation / modification of contract.
• Refusal or delay in cashing out a contract.

Individuals and organizations that are considered “consumers” can file a complaint. This includes:

• Individuals (natural persons) who have not been declared bankrupt.
• Small companies (legal entities) that are registered, are not in liquidation and had a turnover of up to €350,000.
• Charitable foundations, associations or associations of persons with annual income up to €250,000.
• Trusts with net assets up to €250,000.
• Provident funds with net assets up to €250,000.

Financial institutions and supervisory authorities do not have the right to file a complaint.

Yes, you have the right to file a complaint in this case as well.

You can file a complaint against: 

• A Bank, which is supervised by the Central Bank of Cyprus.
• A Credit Buyer, which is supervised by the Central Bank of Cyprus.
• An Electronic Money Institution or Payment Institution, supervised by the Central Bank of Cyprus.
• An Investment Firm (CIF), which is supervised by the Cyprus Securities and Exchange Commission.
• An Insurance Company, which is supervised by the Superintendent of Insurance.

Submitting a complaint to the Financial Commissioner is done by completing the relevant form and sending it, along with the necessary documents, either:

• Electronically by email or via the website.
• By post to the address of the Office of the Financial Commissioner.
• By fax .
• By hand delivery to the Office of the Financial Commissioner.

📄 Download the complaint form here:

1. Complaint Submission Form for Individuals (PDF)
2. Complaint Submission Form for Legal Entities etc. (PDF)

Yes, a fee of €20 is payable upon submission of the complaint.

You must first submit a written complaint to the financial institution. If they do not respond within a reasonable amount of time or you are not satisfied with the response, you can appeal to the Financial Ombudsman within 12 months from the date of your complaint.

A. For Natural Persons

1. Receipt of payment of the complaint fee (€20).
2. Copy of Identity Card or Alien Registration Card (ARC) or Copy of Passport.
3. If the complaint is submitted by a representative: Power of attorney with original certification.
4. Copy of a complaint submitted to the financial company.
5. Notification of receipt of the complaint.
6. Copy of the financial institution’s response (if provided).
7. Copy of relevant contract or agreement (if any).
8. Any other relevant document supporting the complaint.

B. For Legal Entities / Organizations / Foundations, etc.

They submit all of the above (1–8) and the following in addition:

1. Certificate of incorporation of a legal entity.
2. Board of Directors decision or authorization for representation.
3. Copy of Identity Card or Alien Registration Card (ARC) or Copy of Passport of legal representative.
4. One of the following (for financial data):

• Documentary evidence or Certificate from a member of ICPAC (Cyprus Institute of Certified Public Accountants), regarding turnover / annual income / net assets or
• Audited financial statements of the previous year.

For a complaint to be accepted:

• It must concern a dispute or protest of up to €250,000.
• A written complaint must have been made to the financial institution within six months from the moment the consumer received or should have received knowledge of the act.
• The complaint must be submitted to the Financial Commissioner:
  • Within 12 months of submitting the complaint to the financial institution, or
  • Within 18 months from the time the consumer became aware or should reasonably have become aware of the difference.
• The transaction falls within the supervisory responsibilities of the Central Bank, the Securities Commission or the Insurance Commissioner.
• No Court decision has been issued on the same matter and no legal proceedings are pending (unless they have been suspended).
• It must not have been examined by another dispute resolution body.
• It should not be malicious or trivial.
• The consumer must pay a fee of €20 upon submitting the complaint and provide all required documents.

Yes, you can file a lawsuit before a Court, even after submitting a complaint to the Financial Ombudsman. However, you are required to notify the Ombudsman on the same day that the lawsuit has been filed.

After being notified or otherwise informed of the initiation of legal proceedings, the Commissioner terminates the examination of the complaint and informs the financial undertaking accordingly.

When both parties agree and receive permission from the Court to postpone the proceedings, in order to appeal to the Commissioner for an out-of-court settlement. The postponement cannot exceed four months.

The process is usually completed within 90 days from the date the Commissioner receives all the necessary documents and evidence. In more complex cases, the duration may be extended.

1. Decision in favor of the Consumer 
   • Recommendation for compensation of up to €100,000 or other corrective actions.
   • Recommendation to the financial company for payment of additional compensation.
   • Recommendation for measures to be taken to resolve the problem.
2. Decision to reject the complaint 
3. Friendly settlement
   • The matter is resolved amicably and the complaint is closed without a decision being issued.
4. Complaint termination 
   • The complaint does not meet the criteria and conditions.

Not automatically. The Commissioner’s decision becomes binding only if both parties (the consumer and the financial institution) accept it in writing. Acceptance of the decision by both parties makes it final and not subject to appeal before a Court.

• The parties have two months from the issuance of the decision to declare whether they accept it.
• If they do not respond within the deadline, it is considered that they reject it.
• If both parties accept it, the financial institution must comply within 1 month of acceptance.

If the financial institution does not accept the decision, it is not binding on it. In such a case, you have the right to appeal to the Courts, if you consider it necessary. However, the Office of the Financial Ombudsman has no authority to become involved in any legal proceedings, nor to provide legal advice.

The decision of the Financial Commissioner is final and not subject to appeal or revision. There is no provision for review or submission of a complaint regarding the manner in which the complaint was examined by the Office of the Commissioner.

An application may be submitted by a debtor whose credit facilities are in arrears or overdue and require restructuring, provided that:

• Has not been declared bankrupt (natural person) or is not in liquidation proceedings (legal person).
• It belongs to one of the following categories:
  • Private individual (natural person).
  • Small business (legal entity) with an annual turnover of up to €350,000.
  • Charitable foundations, associations or associations of persons with annual income up to €250,000.
  • Trusts with net assets up to €250,000.
  • Provident funds with net assets up to €250,000.

Yes, you can apply for the appointment of a mediator even if your loan has been transferred to a credit acquisition company, provided that all relevant conditions are met.

The Financial Commissioner appoints a mediator for the purpose of facilitating the restructuring of credit facilities, assuming, mainly, a coordinating role. Mediation provides an opportunity for borrowers and licensed institutions to discuss and reach a mutually acceptable and sustainable solution, such as a modification of the terms of the loan, an extension of the repayment period, a reduction in the interest rate or a full settlement. Through this process, time-consuming and costly legal proceedings are avoided, communication is enhanced and the timely settlement of debts is promoted before they reach extreme measures, such as foreclosures.

To apply for appointment as an intermediary by the Financial Ombudsman, all of the following must apply:

• The credit facility is in arrears or overdue.
• The credit facility should concern:
  • Loan, overdraft, credit card or financial leasing.
  • An initial contractual obligation of up to €350,000.
  • Security by a mortgage on a primary residence or business premises.
• The assessed value of the property should not exceed:
  • €350,000 for a main residence.
  • €750,000 for a commercial building.
• There is no:
  • Court decision on the dispute.
  • Ongoing legal proceedings
  • Auction process for the property underway.
• The credit facility must not have been terminated.

The application must be submitted:

• Within 14 days of submitting the Personal Financial Statement (PFS) or audited financial statements to the licensed institution, or
• Within 30 working days from:
  • the submission of a first restructuring proposal or
  • the sending of a negative response from the licensed institution, or
  • the passage of six months without a proposal from the licensed institution after the PFS.

The “main residence” is the residence used for the residence of its owner or the residence under construction and intended for the same purpose. In the case of a financial leasing contract, the main residence is understood to be the residence used by the lessee of the contract. The use must concern a period of at least six months per year.

“Business premises” is defined as a property used for housing and conducting the business and/or commercial activities of the debtor’s business. This property must be necessary for the continued operation of the business.

Through valuations by registered ETEK (Cyprus Scientific and Technical Chamber) member valuers, made within two years prior to the application. If there are two valuations with a deviation of up to 25%, the average is taken. If it exceeds 25%, a third valuation is made through ETEK.

The application for the appointment of an intermediary to the Financial Commissioner is made by completing the relevant form and sending it, together with the necessary documents, either:

• Electronically by email or via the website.
• By post to the address of the Office of the Financial Commissioner.
• By fax.
• By hand delivery to the Office of the Financial Commissioner.

📄 Download the application form here:

• Application Form from Natural Persons for the Appointment of a Mediator for the Restructuring of Credit Facilities (PDF)
• Application Form from Legal Entities etc. for Appointment of a Mediator for Restructuring of Credit Facilities (PDF)

Yes, there is a cost, which is structured as follows:

• When submitting the application: A fee of €20 is paid.
• If the mediation process proceeds: There is an additional cost for the mediator’s services, which is covered jointly by the debtor and the licensed institution as follows:

• • Initial credit facility amount – Up to €100,000
    • Total cost :  €400
    • Cost breakdown: 
      • Debtor (20%) :  €80
      • Licensed Institution (80%):  €320
  • Initial credit facility amount – Over €100,000
    • Total cost :  €500
    • Cost breakdown:
      • Debtor (20%) : €100
      • Licensed Institution (80%): €400

A. For Natural Persons

1. Proof of payment of application fee (€20).
2. Copy of Identity Card or Alien Registration Card (ARC) or Copy of Passport.
3. If the application is submitted by a representative: Power of attorney with original certification.
4. Credit facility agreement between a debtor and a licensed institution.
5. Statement of other credit facilities (if applicable).
6. Restructuring proposal from a licensed institution or a letter of negative decision for restructuring.
7. Certificate from the community manager that the mortgaged property is a primary residence or business premises.
8. Valuation of main residence or business premises (if any).

B. For Legal Entities / Organizations / Foundations, etc.

They need to submit all of the above (1–8) and in addition the following:

9. Certificate of incorporation of a legal entity.
10. Board of Directors decision or authorization for representation.
11. Copy of Identity Card or Alien Registration Card (ARC) or Copy of Passport of legal representative.
12. One of the following (for financial data):

• Documentary evidence or Certificate from a member of ICPAC (Cyprus Institute of Certified Public Accountants), regarding turnover / annual income / net assets or
• Audited financial statements of the previous year.

No. While the mediation process is pending and until its completion, the licensed institution is not permitted to initiate legal proceedings or proceed with the sale of mortgaged property by auction.

Yes, the debtor has the right, at any time, to request the Financial Ombudsman to terminate the mediation process. In this case, he/she will be fully responsible for the costs of using the Ombudsman’s services.

No. The licensed institution cannot refuse to participate in the mediation process, once the Debtor’s application has been approved by the Financial Ombudsman. Their participation is mandatory.

The mediation process begins to run from the first mediation meeting of the parties. Its duration may not exceed one month.

The completion time may be extended for another one month, if, in the opinion of the Commissioner, there is a serious reason.

Upon completion of the procedure, the licensed institution submits a restructuring proposal to the Debtor, as formulated in the context of the mediation.

The process can lead to either:

• In agreement: If the Debtor accepts the restructuring proposal, then the terms of the agreement will be implemented and the process is successfully completed.
• In case of non-Agreement: If the Debtor does not accept the proposal, the mediation process is considered unsuccessful.

You have the right to appeal to the Dispute Resolution Committee, within 5 working days from the date of submission to it of the proposal of the licensed institution after the completion of the mediation process.

📌 You cannot reapply to the Commissioner for the appointment of a new mediator.

The Dispute Resolution Committee is a committee appointed by the licensed institution and is responsible for examining the debtor’s complaints. This concerns either a decision taken by the licensed institution or the failure or refusal of the institution or the credit purchaser to take a decision regarding the restructuring of its credit facilities, as provided for in the Arrears Management Directive of the Central Bank of Cyprus.

Yes, provided that specific conditions are met and the debtor is considered eligible. Specifically:

• The complaint is submitted by an eligible debtor, whose property is a primary residence and whose assessed value does not exceed €350,000.
• The eligible debtor has received the Type “IA” Notice (for the sale of immovable property).
• The complaint is submitted to the Financial Commissioner within 21 days from the service of the Press Notice “IA”.
• No court decision or order for registration/enforcement of an arbitration award has been issued, and no legal proceedings are ongoing, unless a stay order has already been issued by the court.

The term “eligible debtor” refers to a natural person who meets specific criteria to be entitled to file a complaint for confirmation of their required mortgage debt, prior to the foreclosure process.

Specifically, an eligible debtor is considered to be one:

• Whose mortgaged property is being sold.
• Whose property constitutes the main residence of the individual and/or his/her family for residence, for more than six (6) months per year.
• Whose main residence assessed value does not exceed €350,000.
• Who as a debtor has not been classified as uncooperative after 14/7/2023.

The submission of a complaint to the Financial Ombudsman by an eligible debtor is done by completing the relevant form and sending it along with the necessary documents, either:

• Electronically by email or via the website.
• By post to the address of the Office of the Financial Commissioner
• By fax.
• By hand delivery to the Office of the Financial Commissioner.

📄 Download the complaint form from an eligible debtor here:

• Form for Submission of a Complaint Against a Licensed Institution by an Eligible Debtor Regarding the Amount of the Required Mortgage Debt (PDF)

Yes, a fee of €20 is payable upon submission of the written complaint.

1. Receipt of payment of the complaint fee (€20).
2. Copy of Identity Card or Alien Registration Card (ARC) or Copy of Passport.
3. If the complaint is submitted by a representative: Power of attorney with original certification.
4. Copy of notice of intended sale, Form “IA”.
5. Copy of Type “Θ” and Type “Ι” notification (if available).
6. Certificate from the community manager that the property under sale is a primary residence.
7. Copy of a recent utility bill (not older than 6 months).
8. Valuation of main residence (if any).

The process includes the following stages:

• Submit a complaint to the Financial Commissioner within 21 days from the date of service of the notice type “IA”.
• Notification of the complaint to the licensed institution (bank, credit acquisition company).
• The licensed institution must provide the required information within five days of notification.
• If the complaint does not meet the requirements, the process is terminated.
• If the complaint meets the requirements, the examination proceeds, including confirmation of the amount of the required mortgage debt.
• The Commissioner issues a decision within 45 days of receiving all necessary information.
• The parties involved have 10 days from the issuance of the decision to declare whether they accept or reject it.

The Commissioner checks whether the amount claimed by the licensed institution is legal and documented. Specifically, he examines:

• Charges on account statements.
• Changes in the base interest rate and margin and whether they were made in accordance with the contract and the law.
• Costs and fees imposed.
• Interest capitalization.
• Late fees.
• Charges arising from unfair terms.

No. Since the examination of the complaint by the Financial Commissioner is ongoing, the foreclosure process is suspended.

If the licensed institution (e.g. bank, credit acquisition company) bypasses this stay and proceeds with the foreclosure process while the complaint is being reviewed by the Commissioner, the eligible debtor has the right to file an application or appeal with the District Court, requesting the setting aside of the type “IA” notice.

Yes, you can file a lawsuit in Court even after submitting a complaint to the Financial Ombudsman. However, you must notify the Ombudsman on the same day that you have filed the lawsuit.

📌 The consumer may request the Commissioner not to terminate the procedure and to continue the examination of the complaint before the issuance of a court decision, with a view to an out-of-court resolution. In such a case, the consumer must inform the Court accordingly in the pending procedure.

The Commissioner’s decision on the amount of the verifiable amount owed is binding only if it is accepted by both parties involved (the eligible debtor and the licensed institution), within 10 working days from the date of its issuance.

1. If both parties accept it in writing:
   The decision becomes binding and is implemented without further procedures.
2. If one or both parties do not accept it or do not respond within the deadline:
   The decision ceases to be binding.

📌 If the decision is not accepted:

• In case of rejection by the licensed institution, the sale is suspended until the competent Court rules on the amount of the legally due amount.
• If only the licensed institution accepts the decision, it may proceed with the divestiture process, but it is responsible for paying any compensation that may be awarded by the Court in favor of the eligible debtor.