The Financial Commissioner is also responsible for examining complaints from eligible debtors to confirm the required mortgage debt before the start of the foreclosure process. The eligible debtor submits a completed complaint application against the licensed institution online or in paper form. A fee of €20 is paid when submitting the complaint.
The complaint, provided that it meets the submission and examination criteria, in accordance with the provisions of the relevant legislation, will be examined by the competent officers of the Agency. Subsequently, a relevant decision on the complaint will be issued by the Financial Ombudsman, which will be notified to the eligible debtor and the licensed institution. The Ombudsman’s decision is binding only if accepted by both parties within 10 days.
Useful Terms
What does “Complaint” mean?
“Complaint” means the submission of a dispute by an eligible debtor against a licensed institution for confirmation of the required mortgage debt prior to the foreclosure process in accordance with the Transfer and Mortgage of Real Estate Law.
What does “Eligible Debtor” mean?
A mortgagee whose mortgaged property under sale constitutes a primary residence.
What does “Main Residence” mean?
The residence used for the residence of its owner and/or members of his family, for a period exceeding six (6) months per year, the estimated value of which does not exceed three hundred and fifty thousand euros (€350,000).
Submission requirements
- The complaint is filed by an eligible debtor.
- The assessed value of the main residence does not exceed €350,000.
- The eligible debtor has received the Type “IA” Notice.
- The complaint is submitted to the Financial Commissioner within 21 days of the service of the Form “IA” Notice on the eligible debtor.
- The eligible debtor pays a fee of €20 when submitting his Complaint to the Commissioner.
Complaints that are not examined:
- Complaints for which a court decision or an order for registration and enforcement of an arbitration award or a procedure for registration and execution of a court decision has already been issued.
How to Submit a Complaint
You can submit your complaint to the Financial Ombudsman in one of the following ways:
- By hand at the address Kypranoros 15, 1st floor, 1061 Nicosia
- By post: P.O. Box 26722, 1647 Nicosia
- By fax to 22660584 or 22660118
- By email to complaints@financialombudsman.gov.cy
- Through an online application on our website by clicking here.
If you wish to submit your complaint in writing using one of the above methods (1-4), download the application: Complaint Submission Application from an Eligible Debtor
The complaint may be submitted in Greek or English. The decision will be issued in the language in which the complaint was submitted.
Payment of Application Fee
- Submitting a mediation application costs €20, and payment is made to one of the three bank accounts of the Agency.
- The legal proof of payment must state the name of the consumer who submitted the application.
- The Office of the Financial Commissioner does not accept direct payment from consumers in cash/by card.
- In the event that the Application is rejected or withdrawn, the €20 fee is not refunded.
Required Documents for Submitting a Complaint
- Receipt of payment of the complaint fee (€20).
- Copy of Identity Card or Alien Registration Card (ARC) or Copy of Passport.
- If the complaint is submitted by a representative: Power of attorney with original certification.
- Copy of notice of intended sale, Form “IA”.
- Copy of Type “Θ” and Type “Ι” notification (if available).
- Certificate from the community manager that the property under sale is a primary residence.
- Copy of a recent utility bill (not older than 6 months).
- Valuation of main residence (if any).
What does the Financial Commissioner examine for purposes of confirming the required mortgage debt:
- All charges recorded on account statements.
- Whether the charges were made in accordance with the Law and the terms of the Contract.
- Changes in the base interest rate and margin.
- Expenses and commissions
- Capitalizations
- Interest delinquencies
- Unfair Clauses
Possibilities after filing a complaint
Registration of a lawsuit by the consumer after submitting a complaint
If the consumer files a complaint with the Commissioner and later files a lawsuit against the financial institution on the same matter, he must inform the Commissioner on the same day about the lawsuit. If the Commissioner learns of the lawsuit (whether through the consumer’s notification or otherwise), he stops examining the complaint and informs the financial institution accordingly.
The debtor in question may request the Commissioner not to terminate the procedure and to examine the complaint before the Court’s decision is issued, with a view to resolving the complaint out of court, where possible, and in such a case, the eligible debtor shall inform the Court accordingly in any pending procedure.
Settlement of a dispute between involved parties
If the parties involved in the complaint agree to resolve the dispute, they must notify the Commissioner and provide him with details of their agreement. Once the Commissioner receives these notifications and confirms that the agreed compensation has been paid to the consumer, he stops examining the complaint.
Decision Issuance
- The Commissioner’s decision is issued no later than 45 days from the date of receipt of the complaint.
- It is noted that the financial institution cannot proceed with the sale of the property before 45 days have passed or the 10th working day from the issuance of the decision, whichever is later.
- If the business proceeds with the sale before the decision is issued, the debtor may apply to the Court to stop the process.
Boundness
The Commissioner’s decision is binding only if both parties accept it. The two parties must declare within 10 working days of the decision being issued whether they accept the decision as binding.
If they do not agree or the financial institution does not agree, the sale process is suspended until a decision is issued by the competent Court and the Commissioner’s decision is not considered binding.
If the financial institution agrees but the eligible debtor does not agree, then the financial institution may proceed with the sale and is obligated to pay the eligible debtor any compensation the Court decides.
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Need more information?
See the Frequently Asked Questions page for immediate answers or contact us at email: complaints@financialombudsman.gov.cy.