Alpha Bank Fined €160,000 for Abusive Mortgage Loan Terms

The Consumer Protection Service (CPS) has imposed a fine of €160,000 on Alpha Bank Cyprus Ltd for abusive terms in mortgage loan agreements. The decision, dated March 9, 2026, resulted from an ex officio investigation by the CPS, based on the Consumer Protection Law of 2021.

The investigation began following a letter from the CPS to the Bank on July 23, 2024, requesting information regarding mortgage loan agreements. The CPS found that certain terms were not sufficiently transparent and created an imbalance between the rights and obligations of the Bank and consumers.

Particular reference was made to term 1.2 of the agreement, regarding the purpose, amount, and disbursement of the loan, as it did not clearly specify the payment methods and disbursement conditions. The Bank argued that the disbursement method depends on many factors and that there is prior consultation with the borrower, but the CPS rejected the claim.

The CPS ordered the immediate cessation of the use of the terms within 60 days, as well as the avoidance of their use in the future. At the same time, it imposed an administrative fine of €1,000 for each day the terms continued to be used after the deadline. The Bank cooperated with the CPS during the investigation and pledged to amend the terms and inform the borrowers.