Nicosia, Cyprus. MPs discussed a bill on the financial commissioner’s responsibilities and procedures for complaints and foreclosures, with disagreement over whether the commissioner’s decisions should be binding for banks. The bills are expected to be submitted to the plenum for voting on April 6.
Amendments and timeframes
During a House finance committee discussion on Monday, a finance ministry representative said most amendments concerned legal technical details and definitions, mainly relating to timeframes.
The deadline for a person to appeal to the commissioner after receiving a notice was extended from 21 days to 30 days. After that, they would have 30 days instead of 15 to seek a solution and a 60-day protection from foreclosure.
Loan restructuring and appeals
The bill includes a clause allowing a bank to proceed with selling a loan if the debtor violates any terms of the loan restructuring.
The text also references grounds for an appeal against the commissioner’s rulings, mainly concerning banks.
Purpose and implementation date
The finance ministry said the main philosophy of the amendments was to give parties more time and make the process more flexible in relation to recourse to the courts.
If passed, the law would come into force on June 1.
Dispute over binding decisions
A main point of Monday’s discussions was making the financial commissioner’s decisions binding if accepted by the consumer.
Financial Commissioner Valentina Georgiades said this would address an existing imbalance between individuals and banks.
Do you think the financial commissioner’s decisions should be binding on banks when accepted by consumers?