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

Fifteen new corona virus cases detected out of 3,132 tests

According to the Epidemiological Surveillance Unit of the Ministry of Health 15 new cases of the SARS-CoV-II virus were detected out of a total...

Fifty Cypriots interested to be repatriated, Cyprus sends rescue teams – medical supplies to Lebanon

Cyprus Foreign Affairs Minister Nikos Christodoulides has said that 50 Cypriot nationals have shown interest for repatriation from Lebanon until 14:00 local Cyprus time,...

Unemployed people in Cyprus record monthly drop, annual increase this July

Unemployed people registered at the District Labour Offices on the last day of July 2020, reached 32,313 persons, according to a press release issued...

Cypriot Mission’s departure to Beirut (Videos & Images)

Two police helicopters, with a five-member team of the Catastrophe Response Special Unit and members of the Motorised Rapid Action Unit, as well as...

Greek and Qatari planes supply aid to Beirut after massive explosion

The European Union, Turkey and Gulf states are among those offering assistance to Lebanon following an explosion at a warehouse in Beirut that killed...


Octopus ‘Kathisto’ (or Octopus braised in Wine)

Ingredients: 1/2 cup Greek extra virgin olive oil 2 medium onions, chopped fine 1 large octopus, about 2kg (cleaned and kept whole) 3/4 cup dry red wine 1/3 cup...

Homemade lemonade

Ingredients: 1 cup lemon juice 1 cup sugar Method: Thoroughly wash the lemons with soap and warm water. Roll each lemon with the palm of your hand, pressing...

‘Striftaria’ mini cheese pies

Ingredients 1 ½ cup milk 2 tbsps. flour 4 tsps. of butter 3 eggs, slightly beaten + 1 extra with 1 tbs. of milk for spreading 1 pack of...

Mini potato canapes baked on salt

Ingredients Serves: 12 1kg small Cypriot potatoes rock salt, as needed 250g salted butter 300ml full fat cremé frâiche 1 pot cod or salmon roe Method Prep:20min › Cook:35min › Ready in:55min Take...