{"id":859,"date":"2024-02-06T01:00:06","date_gmt":"2024-02-05T23:00:06","guid":{"rendered":"https:\/\/financialombudsman.org.cy\/?p=859"},"modified":"2025-05-15T09:32:09","modified_gmt":"2025-05-15T06:32:09","slug":"information-note-1-2024","status":"publish","type":"post","link":"https:\/\/financialombudsman.org.cy\/en\/information-note-1-2024\/","title":{"rendered":"Information Note 1\/2024 \u2013 The new legal framework governing the expanded powers of the Financial Commissioner (Ombudsman)"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Information Note 1\/2024<\/h3>\n<p>[\/vc_column_text][vc_btn title=&#8221;Download File &#8211; Information Note 1-2024 &#8211; NEW LEGAL FRAMEWORK &#8211; EXPANDED POWERS OF FINANCIAL COMMIS. &#8211; COMPLAINT.pdf&#8221; style=&#8221;classic&#8221; size=&#8221;lg&#8221; align=&#8221;center&#8221; i_icon_fontawesome=&#8221;fas fa-file-pdf&#8221; css=&#8221;&#8221; add_icon=&#8221;true&#8221; link=&#8221;url:http%3A%2F%2Ffinancialombudsman.org.cy%2Fwp-content%2Fuploads%2F2025%2F02%2F%CE%95%CE%9D%CE%97%CE%9C%CE%95%CE%A1%CE%A9%CE%A4%CE%99%CE%9A%CE%9F-%CE%A3%CE%97%CE%9C%CE%95%CE%99%CE%A9%CE%9C%CE%91-1-%CE%9D%CE%95%CE%9F-%CE%9D%CE%9F%CE%9C%CE%99%CE%9A%CE%9F-%CE%A0%CE%9B%CE%91%CE%99%CE%A3%CE%99%CE%9F-%CE%94%CE%99%CE%95%CE%A5%CE%A1%CE%A5%CE%9C%CE%95%CE%9D%CE%95%CE%A3-%CE%91%CE%A1%CE%9C%CE%9F%CE%94%CE%99%CE%9F%CE%A4%CE%97%CE%A4%CE%95%CE%A3-%CE%A4%CE%9F%CE%A5-%CE%A7%CE%A1%CE%95%CE%A0-%CE%A0%CE%91%CE%A1%CE%91%CE%A0%CE%9F%CE%9D%CE%91-%CE%A5%CF%80%CE%BF%CE%B3%CF%81%CE%B1%CE%BC%CE%BC%CE%AD%CE%BD%CE%BF-min.pdf|target:_blank&#8221;][vc_empty_space][vc_column_text css=&#8221;&#8221;]<b>INTRODUCTION<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>1.<\/strong> On 26\/01\/2024, five Guidelines were published in the Official Gazette of the Republic of Cyprus, which concern compliance with the provisions of the Laws on the Establishment and Operation of the Single Body for the Out-of-Court Resolution of Financial Nature Disputes. These Guidelines, which also include the new forms of our Office, aim to create a more efficient framework for the smooth operation of the Office of the Financial Commissioner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>2.<\/strong> Because this Information Note is addressed to any interested consumer who wishes to appeal to the Office of the Financial Commissioner, in order to submit a complaint against a financial company, we will attempt to explain, based on the new legal framework, the relevant procedures that interested parties (natural and legal persons) should follow to submit and examine a complaint by the Financial Commissioner.<\/span><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>3.<\/strong> The Guidelines regarding the procedures for submitting and examining complaints are as follows:<\/span><\/p>\n<p style=\"font-weight: 400; padding-left: 40px;\">(i) The 2024 Directive on the Procedure for the Submission and Examination of Complaints by Natural Persons by the Financial Commissioner (Parts A and B)<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-size: inherit;\">Includes two (2) forms.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"font-weight: 400; padding-left: 40px;\">(ii) The 2024 Directive on the Procedure for Submitting and Examining Complaints of Legal Entities by the Financial Commissioner<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-size: inherit;\">Includes one (1) form.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>4.<\/strong> It is noted that a second Information Note will follow, in which the procedures of the next two Directives will be explained, which are related to the application procedures for the appointment of a mediator, for the purpose of restructuring credit facilities. It will also be followed by a third Information Note, in which the procedures of the fifth and last Directive, for the appointment of an expert, will be explained.<\/span><\/p>\n<p><b>(i) THE DIRECTIVE ON THE PROCEDURE FOR THE SUBMISSION AND EXAMINATION OF COMPLAINTS BY NATURAL PERSONS BY THE FINANCIAL COMMISSIONER OF 2024<\/b><\/p>\n<p><b>(Part A) Submission of complaints, by natural persons\/consumers, against financial companies (banks, credit acquisition companies, insurance companies, investment service companies, etc.)<\/b><\/p>\n<p><b>5<\/b><span style=\"font-weight: 400;\"><strong>.<\/strong> The above Directive applies to any natural person who is not in bankruptcy and wishes to file a complaint against a financial company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In more detail:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The complaint must concern a dispute against a financial company, the amount of which does not exceed the amount of two hundred and fifty thousand euros (\u20ac250,000).<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Before submitting the complaint to the Commissioner, the consumer should have previously submitted his complaint, in writing, to the financial business against which the complaint is directed, within a period of six (6) months, from the date on which he became aware or reasonably should have become aware of the harmful act or omission of the financial business or the fact that he had grounds for filing a complaint.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> If the financial company responds or does not respond to the consumer, within a period of three (3) months, from the date of receipt of the complaint and the consumer is not satisfied with the response or does not receive a response, then the consumer may, within twelve (12) months, from the date on which he submitted a complaint to the financial company, submit his complaint to the Commissioner.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The submission of a complaint to the Commissioner is done by completing and submitting the <\/span><b>Complaint Submission Form by Natural Persons<\/b><span style=\"font-weight: 400;\">, at the Office of the Financial Commissioner and must be accompanied by proof of payment of the fee of twenty euros (\u20ac20). The form is posted on the website www.financialombudsman.gov.cy (&#8220;Forms&#8221; field) and is submitted either by hand, by post (registered), by fax or by email. It is noted that the electronic submission through the website of our Office will be implemented in the future and for this purpose a relevant announcement will be issued.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> It is clarified that the complaint is registered and receives a complaint number <\/span><b>ONLY WITH ITS FULL COMPLETION<\/b><span style=\"font-weight: 400;\">. Therefore, in case of providing incomplete information, reasonable time is given to the consumer, in order to complete and provide the required information.<\/span><\/li>\n<\/ul>\n<p><b>Review and Issuance of a Decision by the Commissioner<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>6.<\/strong> The procedure for examining a complaint and issuing a decision may not exceed ninety (90) days. The Commissioner, exceptionally and in particularly complicated circumstances, may extend the deadline by ninety (90) days, after informing the Agency&#8217;s Board of Directors and both parties accordingly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Next:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> With the issuance of the decision, the consumer and the financial company are informed that, within two (2) months, they must declare whether or not they accept the binding nature of the issued decision. If the consumer or the financial company and\/or the two parties do not inform the Commissioner in writing, within two (2) months from the date of the decision, whether they accept or reject the binding nature of his issued decision, then the Commissioner, immediately after the expiration of this period, considers that the consumer and\/or the financial company have rejected the binding nature of his decision. Therefore, the decision is no longer considered binding on any of the parties involved.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Provided that, only upon acceptance of the binding nature of the decision by both parties, it becomes final and not subject to appeal before the Court.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> After the expiration of the two (2) months or earlier, in the event that the involved parties respond before the two (2) month period, as to whether or not they accept the binding nature of the issued decision, the Commissioner informs in both cases, the involved parties on whether or not the binding nature of his decision has been accepted.<\/span><\/li>\n<\/ul>\n<p><b>Useful Notes<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The Commissioner is not tasked with examining a submitted complaint, and therefore proceeds to terminate it, if at the time of its submission, a decision has already been issued by a Court of the Republic or a legal proceeding is in progress.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> In the event that legal proceedings are in progress, the consumer and the financial company may, if they agree, obtain the permission of the Court in order to approach the Commissioner, in order to settle the dispute out of court. It is clarified that the postponement time cannot exceed 4 months, at most.<\/span><\/li>\n<\/ul>\n<p><b>(Part B) Submission and review of complaints, by eligible borrowers, against licensed institutions (Verification of required mortgage debt)<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>7.<\/strong> The above Directive applies to any eligible debtor (mortgage debtor), who wishes to file a complaint against a financial company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In more detail:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Eligible debtor (natural person), is the mortgage debtor whose mortgage property under sale is a main residence used for the residence of him and\/or his family members, for a period of more than six (6) months per year. It is noted that the estimated value of the main residence must not exceed three hundred and fifty thousand euros (\u20ac350,000) and the debtor himself has not been classified as non-cooperative after 7\/14\/2023.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The complaint is submitted within twenty-one (21) days, from the service of the written Notice Type &#8220;IA&#8221;.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The submission of a complaint to the Commissioner is done by completing and submitting the Form for Submission of a Complaint against a Licensed Institution by an Eligible Debtor regarding the amount of the required mortgage debt, to the Office of the Financial Commissioner and must be accompanied by proof of payment of the fee of twenty euros (\u20ac20). The form is posted on the website www.financialombudsman.gov.cy (&#8220;Forms&#8221; field) and is submitted either by hand, by post (registered), by fax or by email. It is noted that the electronic submission through the website will be implemented in the future and a relevant announcement will be issued for this purpose.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> It is clarified that the complaint is registered and receives a complaint number <\/span><b>ONLY WITH ITS FULL COMPLETION<\/b><span style=\"font-weight: 400;\">. Therefore, in the case of providing incomplete information, a limited time is given to the eligible debtor in order to complete and provide the required information and in any case no more than 21 days.<\/span><\/li>\n<\/ul>\n<p><b>Review and Issuance of a Decision by the Commissioner<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>8.<\/strong> The procedure for examining a complaint and issuing a decision may not exceed forty-five (45) days from the date of registration of the complaint.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Next:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The Commissioner issues the decision, in which the amount of the verifiable amount owed is recorded, with documented reference to the findings.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> With the issuance of the decision, the eligible debtor and the licensed institution are informed that, within (10) business days, they must state whether or not they accept the binding nature of the issued decision.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> It is noted that, if the eligible debtor or the licensed institution or both parties do not inform the Commissioner in writing, within ten (10) working days, from the date of issuance of the decision, as to whether or not they accept the binding nature of the decision, then the Commissioner, immediately after the expiration of this period, considers that the eligible debtor and\/or the licensed institution have rejected the decision. Therefore, the decision is no longer considered binding on anyone.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> After the expiration of ten (10) working days or earlier, in the event that the parties involved respond before the period of ten (10) days, as to whether or not they accept the binding nature of the issued decision, the Commissioner informs, in both cases, the parties involved, as to whether or not the binding nature of his decision has been accepted.<\/span><\/li>\n<\/ul>\n<p><b>Useful observations<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The Commissioner does not undertake to examine a submitted complaint, and therefore proceeds to terminate it, if at the time of its submission, a decision has already been issued by a Court of the Republic.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> According to the transitional provisions of the Transfer and Mortgage of Real Estate Laws, in relation to the right to submit a complaint to the Financial Commissioner, for confirmation of a debt by an eligible debtor, it is provided that this applies to all sale procedures for which the first auction has not been held or has not been successfully held, on the effective date of the Transfer and Mortgage of Real Estate Act (Amendment) (No. 5) Law of 2023, i.e. on 19\/12\/2023. Therefore, any Notice of Type &#8220;T&#8221; and &#8220;I&#8221;, which has been sent regarding the cases provided above, is considered invalid and sent again. In addition, it is provided that, in the event that the licensed institution has already sent written notices according to Form &#8220;IA&#8221;, as far as the cases provided above are concerned, the notice according to Form &#8220;IA&#8221; is sent again.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> In the event that the Commissioner issues a decision with which the licensed institution and the eligible debtor do not agree or the licensed institution does not agree and the Commissioner&#8217;s decision is not accepted as binding, the process of intended sale of the property is suspended until a decision is issued by a competent Court that will decide on the amount of the legally required amount. And the decision of the competent Court will refer to a decision of the Court of First Instance in a civil action.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> In the event that the Commissioner issues a decision with which the eligible debtor does not agree, but the licensed institution agrees and, therefore, the Commissioner&#8217;s decision is not accepted as binding, the licensed institution may proceed with the process of the intended sale and is obliged to pay the eligible debtor any compensation the Court may decide.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> In the event that the licensed institution, which has been served with the complaint or has received notice of a complaint being examined by the Commissioner pursuant to this subsection, proceeds with the process of intended sale, while the examination of the complaint by the Commissioner is pending, the eligible debtor may file an application\/appeal in the District Court, to set aside the Type &#8220;IA&#8221; Notice, as if proceedings were pending appointment of a mediator, with the aim of restructuring credit facilities.<\/span><\/li>\n<\/ul>\n<p><b>(ii) THE DIRECTIVE ON THE PROCEDURE FOR THE SUBMISSION AND EXAMINATION OF COMPLAINTS OF LEGAL PERSONS BY THE FINANCIAL COMMISSIONER OF 2024<\/b><\/p>\n<p><b>9<\/b><span style=\"font-weight: 400;\"><strong>.<\/strong> The above Directive applies to any legal entity\/consumer that is not under liquidation and wishes to file a complaint against a financial company (bank, credit acquisition company, insurance company, investment services company, etc.).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In more detail:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The complaint must concern a dispute against a financial company, the amount of which does not exceed the amount of two hundred and fifty thousand euros (\u20ac250,000).<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> A legal person is a legally registered person that is not in liquidation, with an annual turnover, in the year preceding the year in which the complaint is submitted to the Commissioner, that does not exceed three hundred and fifty thousand euros (\u20ac350,000). A legal person can also be a charitable institution or an association or an association of persons, with annual revenues, in the year preceding the year in which the complaint is submitted to the Commissioner, which do not exceed two hundred and fifty thousand euros (\u20ac250,000) or a trust or provident fund, with net assets, on 31 December of the year preceding the year in which the complaint is submitted complaint to the Commissioner, not exceeding two hundred and fifty thousand euros (\u20ac250,000).<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Before submitting the complaint to the Commissioner, the consumer should have previously submitted his complaint, in writing, to the financial business against which the complaint is directed, within a period of six (6) months, from the date on which he became aware or reasonably should have become aware of the harmful act or omission of the financial business or the fact that he had grounds for filing a complaint.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> If the financial company responds or does not respond to the consumer, within a period of three (3) months, from the date of receipt of the complaint and the consumer is not satisfied with the response or does not receive a response, then the consumer may, within twelve (12) months, from the date on which he submitted a complaint to the financial company, submit his complaint to the Commissioner.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The submission of a complaint to the Commissioner is done by completing and submitting the Complaint Submission Form by Legal Entities to the Office of the Financial Commissioner (Ombudsman) and must be accompanied by proof of payment of the fee of twenty euros (\u20ac20). The form is posted on the website www.financialombudsman.gov.cy (&#8220;Forms&#8221; field) and is submitted either by hand, by post (registered), by fax or by email. It is noted that the electronic submission through the website will be implemented in future and a relevant announcement will be issued for this purpose.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> It is noted that the complaint is registered and receives a complaint number ONLY WHEN FULLY COMPLETED. Therefore, in case of providing incomplete information, reasonable time is given to the consumer, in order to complete and provide the required information.<\/span><\/li>\n<\/ul>\n<p><b>Review and Issuance of a Decision by the Commissioner<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>10.<\/strong> The same apply as explained in paragraph 6, above, which concerns the procedure for submitting and examining complaints by natural persons.<\/span><\/p>\n<p><b>Useful Notes<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The Commissioner is not tasked with examining a submitted complaint, and therefore proceeds to terminate it, if at the time of its submission, a decision has already been issued by a Court of the Republic or a legal proceeding is in progress.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> In the event that legal proceedings are in progress, the consumer and the financial company may, if they agree, obtain the permission of the Court in order to approach the Commissioner, in order to settle the dispute out of court. It is further clarified that the postponement time cannot exceed 4 months, at most.<\/span><\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,75,33,32],"tags":[],"class_list":["post-859","post","type-post","status-publish","format-standard","hentry","category-announcements","category-circulars","category-complaints","category-mediations"],"acf":[],"_links":{"self":[{"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/posts\/859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/comments?post=859"}],"version-history":[{"count":12,"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/posts\/859\/revisions"}],"predecessor-version":[{"id":1096,"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/posts\/859\/revisions\/1096"}],"wp:attachment":[{"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/media?parent=859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/categories?post=859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialombudsman.org.cy\/en\/wp-json\/wp\/v2\/tags?post=859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}