FAQ – Missold Cyprus Bank Loans

Frequently asked questions

• My foreign currency mortgage is in substantial arrears. Is there anything I can do about this?

  Yes. You can consider who was responsible for putting you into this situation and then whether you should bring an action against them.

• Who is that likely to be?

  It is likely to be your Independent Financial Advisor ("IFA") in this country , the agent who sold in this country, the developer, the bank who sold you your mortgage product and the lawyer who acted for you in Cyprus.

• Can I just hand the keys back?

  No - in just the same way that you cannot simply hand the keys back in the UK

• Cyprus is another country - surely they cannot touch me in the UK?

  The Republic of Cyprus is a member of the EU and in accordance with the political and legal integration policies of the EU, you can be accountable in the UK for matters taking place in Cyprus, and vice versa. Brexit is unlikely to change this.

• What happens if a bank brings an action against me in Cyprus?

  Don’t bury your head in the sand. You must deal with it otherwise a judgment will be obtained against you and that will become a problem for you in the UK.

• Does this mean that if I have a judgment against me in Cyprus it will effect me in the UK?

  Yes. Judgements from Cyprus are valid in the UK much as a UK judgment would be valid in the UK. Likewise UK judgments are enforceable in Cyprus. Brexit is unlikely to change this.

• Does this mean that my assets in the UK are vulnerable?

  Yes. A judgement from the Republic of Cyprus can be enforced in the UK much like a UK judgment can be enforced in the UK. This means that your property, including your bank savings, earnings, house and even pension are vulnerable.

• The bank is not bothering me. What if I do nothing?

  It will do eventually if you are in default.

• We all have the same claim, can't we all join together?

  These claims have not been successful as class type actions . Whilst groups can be formed claims will be dealt with individually as facts differ from one claim to another

• What are the problems with class actions?

  They are complex and unwieldy and certainly there have been no actions declared to be collective actions in Cyprus as yet. The biggest problems tend to be communication and finance. Your lawyer needs to streamline communications processes, and you need to be in a group where all the participants are willing to contribute financially and accept the burden of any loss. This is because in a group you will all share the risk of adverse costs orders and you cannot afford to be in a group with people may try and avoid these obligations at your expense. One person cannot hold things up or damage things for others. For this reason your lawyers will ask you to fund a fair proportion of your fees "up front". Those unable to provide "up front" funding will have to have their claim dealt with on a piecemeal basis.

• I have already had proceedings issued against me - can I wait to join a group?

  Only in a few cases. "Class Action" is an American term, referred to in the UK as "Collective Action". The general rule of thumb is if a defending party can raise different defences to claims from a number individuals, then these are not strictly collective actions which are more appropriate to matters like defective products. Christofi Law are registering details for collective style action. However, there are important differences between many people effected - for instance some people will have had misrepresentations made to them such as golf course buyers, some would have purchased through UK agents rather than Cyprus agents, some will have claims against different banks. Many will have taken out Swiss Franc mortgages at the insistence of the developer. Some people will not be able to afford to bring proceedings against all the parties and may have to contain their claims (for example, as against the bank only) Therefore there are a number of classes of claim to consider and your lawyer will have to place you where feasible in a group with other similar claims.

• I have already had proceedings issued against me - can I wait to join a group?

  No. You will be on your own to begin with and you will have to fund your acknowledgment and defence, disclosure and trial, and any other matters such as counterclaims, experts evidence and so on. That could be problematic as it will require you to come up with finance for this at short notice. At some point you may be able to ask for your action to be dealt with along with other collective matters if the court in Cyprus decides that there is a case for declaring collective or class actions for the category you are in.

• Do I have to get involved with a group?

  Time has shown that “group style” actions have not been successful particularly those commenced in the UK. In fact many people will find it increasingly more advantageous not to be involved with a group as they do not have to follow any group policy, or group deadlines, or group chronologies and they do not have to rely on erratic funding policies. Also they can “pay as you go” without the need to pay excessively large lump sums up front.

• Is it cheaper to bring a class or collective action?

  That is the theory. However that is not always the case and particularly in the case of Cyprus where the costs regime is far more forgiving and flexible than that in the UK and where costs may be far less than they are in the UK. . Bringing such actions in the UK are almost prohibitively expensive unless funding can be secured, usually from an insurance backer. Otherwise many individuals may consider that they are better off in the long run funding their cases individually.

• Can I Negotiate?

  Yes of course. We encourage this, although that is best done through using a legal experts such as Christofi Law. Many people can damage their chances of a negotiated settlement through their method of approach or through not having a realistic idea of negotiating parameters. Also, companies like Christofi Law operate through existing contacts.

• Is it the same getting involved in proceedings in Cyprus as it is here in the UK?

  No. Whilst there are some similarities the culture and the rules differ, particularly as to application.

• I am interested in getting involved in an action. How do I get started?

  Contact us by e.mail on "info@cwells-law.co.uk" and we will let you know how to participate in the registration process.