A fresh blow to the banking sector from the Consumer Protection Service. In a decision dated 9 March 2026, the agency imposed an administrative fine of €160,000 on Alpha Bank Cyprus for using abusive clauses in mortgage loan contracts.
The decision is part of a broader own-initiative investigation the Service is conducting across all banks operating in the Cypriot market. The aim is to evaluate standard mortgage contracts under the Consumer Protection Law of 2021.
The findings revealed a significant imbalance between the bank and borrowers. Specifically, clauses were found that allowed the bank to unilaterally change interest rates without clear criteria, offset client accounts without notice, deem notifications as delivered even when returned unserved, and pass on property revaluation costs to the borrower.
However, the Service recognised as a mitigating factor the bank’s initiative to propose amendments or deletions of the contested terms, as well as its cooperation throughout the investigation.
It is worth noting that Alpha Bank is not the only institution in the crosshairs. In September 2025, Bank of Cyprus received a fine of €800,000 and Hellenic Bank (now Eurobank Ltd) was fined €600,000 for similar violations.
The Consumer Protection Service says the investigation continues and is expanding to additional banking institutions, while urging citizens to be informed of their rights and to assert them through the courts if necessary.
