Insider Business CCB to pay a further €2 million in interest calculation error

CCB to pay a further €2 million in interest calculation error

The state-owned Cyprus Co-operative Bank (CCB) will pay up to €2 million to rectify an initial correction made to customer accounts who were excessively charged due to a mistake in interest rate calculation concerning customer loans for the period of 2008-2013, Financial Ombudsman Pavlos Ioannou told CNA.

Ioannou said the new correction concerns 150 bank accounts from the 11,000 initially identified to be burdened with wrongful charges concerning the basic lending rate, that resulted in the return of approximately €125 million to borrowers.

He added that according to CCB preliminary estimates, the additional amount to correct the new error may reach €2 million and is associated with loans that have not yet been repaid.

Ioannou said the new error was identified by his office following complaints by “many angry customers.”

In one case, he said, after addressing the initial mistake, the CCB reduced a customer loan by €14,000 but later charged the account with the same amount, adding that the CCB made these interventions without notifying its customers.

“Such practice, which brings about a sudden change in bank accounts, creates a shock of confidence in the banking system,” he said.

In May 2017, the CCB announced it would return a total of €111 million to 11,323 borrowers due to a mistaken application of the rate on loans linked with the European Central Bank basic rates or the Euribor.

Last June, the government announced that the CCB’s performing operations will be acquired by Hellenic Bank, while the CCB along with its non-performing loans and other assets will be transformed into a state-owned asset management company. The acquisition of CCB’s performing operations is expected to be completed by September.

Top Stories

Mainly fine, temperatures at 37 C inland

    Temperatures will remain below 40 C inland today offering some respite from the extreme heat of recent days, but are set to rise again...

New Covid-19 case from repatriations, total now 1004

  One person, a repatriating Cypriot who travelled from the US, has tested positive for coronavirus, bringing the total number of cases to 1004, the...

Lakkotrypis: Moratorium in EEZ would signal end of Cyprus’ energy prospects

    A moratorium on hydrocarbon activities in the exclusive economic zone (EEZ) of the Republic of Cyprus, due to Cyprus settlement efforts or ongoing Turkish...

Israel reimposes series of restrictions after coronavirus spike

    Israel reimposed on Monday a series of restrictions to fight a spike in coronavirus infections, including the immediate closure of bars, night clubs, gyms...

Moody’s: Payment holidays shield banks in 2020, deterioration very likely in 2021

    The high level of loan payment holiday in Cyprus may shield the banks in 2020 but suggests that asset quality deterioration is “still very...

Taste

Cyprus sprouts with cream and prosciutto

In a big, deep frying pan, fry the prosciutto in the olive oil, on medium heat for 2 minutes. Add the onion and garlic...

Pork burger with sundried tomatoes, mozzarella and anchovies

Mix all the ingredients together with the mince in a bowl, and combine well. Divide into 4 balls and form the burgers. Warm a griddle/pan...

Sheftalies

Wash the lamb cauls with plenty of cold water and let them settle in water and vinegar for a little while. Soak the bread crumbs...

Loukaniko Pitsilias – Pitsilia Sausage

Pitsilia sausage is produced in the Pitsilia region from pork minced meat that is “cooked” ( matured) in the dry red wine of the...