Cyprus Property Forum for Buyers, Sellers & Investors

A large group of determined property owners intend taking ‘class action’ for mis-selling Swiss Franc mortgages. If you were advised to take out a Swiss Franc Mortgage and wish to join this group or just require further information then please send an email to lc.te.hill@googlemail.com

Hi Planner,

Perhaps you would post more information about this action and the lawyers involved (If you do not want to post the information in a public forum, please send me an email).

As you may be aware, a number of individuals and companies are charging a fortune and making making outrageous promises about getting Title Deeds that are impossible to keep - and I wouldn't want to see any members of this forum being taken for a ride.

• Class actions (Cyprus)
  
  Are there any mechanisms available for collective redress or class actions?
  
  Where there are numerous persons having the same interest in one cause or matter, one or more of such persons may be authorised by the court to sue or defend in such cause or matter, on behalf or for the benefit of all interested persons (Civil Procedure Rules). Before any such order is made, a duly certified power of attorney, signed by the persons to be represented and empowering the person who is to sue or defend on their behalf, must be filed with the writ of summons. The exception applies in the case of any unincorporated religious, charitable, philanthropic, educational, social or athletic institution or association not established or conducted for profit.
  
  Where any such order is made, the persons represented are all bound by the judgement of the court in the action, and the court's judgement may be enforced against them in all respects as if they were parties to the action.
  
  If any class member cannot be found, the court may, if satisfied that it is expedient so to do, appoint a person to represent the class member. Any judgement or order of the court in the presence of the person or persons so appointed shall be binding on the person represented. An application to the court in this respect must be supported by an affidavit describing the efforts made to find the person concerned.
  
  In relation to funding and costs, the same rules apply as in all other civil actions.

Thanks & Happy Christmas.

Hi Nigel,

Merry Christmas and a Happy New Year to you too.

Let me say, first and foremost, I would never deliberately take anyone ‘for a ride’. The property I purchased in Cyprus has been a financial nightmare and I’m sure there are many others in the same position. Therefore, we certainly have no intention to make things financially worse for anyone.

As you would appreciate, for legal reasons and not to forewarn those that we will be targeting, I am limited to the amount of information I can provide on a public forum. For any further information then please contact Lyn Hill who is driving this legal case.

Nevertheless, what I can say is that we believe the strength to our case is a failed duty of care by the financial Institutions for not warning of the risks in taking out a Swiss Franc Mortgage, specifically the risk of currency appreciation in times of economic uncertainty. We all know and expect the fluctuation in currency prices but their failure to warn us of this risk by not asking their Customers to sign a declaration to this affect, we and a prominent Cypriot lawyer believe this is a serious oversight on their part. However, we will be obtaining a formal legal opinion on the strength of our case before moving forward.

It should be noted that the Banks are now requiring declarations to be signed by owners confirming that they understood the risks involved in foreign currency mortgages. This is at a time when owners are already in financial difficulty and are looking to change their existing mortgage arrangements. Perhaps the banks are recognising their oversight?

Although we have only just started to publicise this action, we already have around 170 owners that have confirmed their support. We are looking for a more to join us in order to cover the legal costs as, in my opinion, the potential rewards out way relatively modest contribution to the fighting fund.

One last point on funding, robust governance procedures will be put in place. It is our clear intention that a dedicated account will be opened, expenditure will be authorised by a number of signatories, a guardian will be appointed and accounts will be audited by a reputable firm of accountants.

I hope that answers some of your questions and as mentioned above for any further information please contact Lyn.

Regards,

Planner

hi nigel we have owned a flat for 3 years now in paphos ,we are 1 of the many who have fallen foul to the swiss mortgage,is there any way you know of banks restructuring the loan in a better currency,and can they claim back assetts in scotland as we beleve its a different legal system if we default

It is no so easy to prove banks' negligence, but it is interesting. Be careful to establish all the necessary elements of negligence (duty, breach of duty, damage, causation). Which bank is the "lucky"? In which city the action is to be taken?

Hi alzebub & welcome to the forum

alzebub wrote:is there any way you know of banks restructuring the loan in a better currency, and can they claim back assets in Scotland as we believe its a different legal system if we default

You need to discuss the matter with the bank - I wrote an article some time ago that may help - see http://www.news.cyprus-property-buyers. ... /id=001361

And yes, the bank can claim your assets in Scotland. The will need to get a judgement from a court in Cyprus first - and then apply to a court in the UK to have that judgement enforced.

Regards,