New body to deal with bank disputes

THE HOUSE Legal Affairs Committee has started examining a bill for the creation of an independent body to deal with differences between banks and clientele.

As Committee Chairman Ionas Nicolaou of DISY explained, the body will work like a mediator between banks and clients to reach a compromise on differences they may have without having to go to court.

“If someone has a problem with charges on their accounts, such as interest rates, they have the ability to apply to this body outside of court. The body will deal with arguments that have to do with sums under €100,000.”

The body will seek solutions to the problem and even though the decision will not be binding, it can be accepted by the two parties and implemented to resolve their differences.

The bill provides the appointment of a Board of Directors and two commissioners. The commissioners will be in charge of finding the solutions and the Board of Directors will monitor the two commissioners.

“Similar bodies exist in 19 EU member states today,” said Nicolaou. “We hope the bill reaches the Plenum in January.”

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