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ARTICLE · 29 MAY 2025

Landmark Ruling Against Unfair Terms In Banking Contracts

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On May 13, 2025, the Nicosia District Court issued a decision that reshapes the banking landscape in Cyprus. The case concerned the Cyprus Land Development Corporation...

CyprusFinance and Banking
Angelos Paphitis
Angelos Paphitis
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On May 13, 2025, the Nicosia District Court issued a decision that reshapes the banking landscape in Cyprus. The case concerned the Cyprus Land Development Corporation (Organismos Christodotiseos Stegis, "OHS"), but its significance extends far beyond, affecting all Cypriot banks and the national banking system as a whole.

The judgment was issued following an application by the Attorney General, on behalf of the Director of the Consumer Protection Service, based on violations of the Law on Unfair Terms in Consumer Contracts (Law 93(I)/96) and EU Directive 93/13/EEC.

What Was Found to Be Unfair?

The court identified a series of standard clauses in loan agreements as unfair, including:

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