Rent Against Installment

Many borrowers seem to be excluded from the "Rent Against Installment" Plan, the Association for the Protection of Bank Borrowers (SYPRODAT) states in a statement, calling on the Parliament to look into the issue immediately.

As reported, while the approval from the General Directorate of Competition of the European Union is awaited and then the implementation of the "Mortgage to Rent" Scheme, many borrowers "who had the misfortune of being trapped buyers, seem to be excluded of this Scheme, as they have no title to the properties which they have bought from various land businessmen through their fault, so they cannot be protected by this "Anti-Drop Scheme", although if the title has been issued to them, they could ".

The Association expresses the opinion that it is urgent for the Parliament to see the matter immediately, in view of the pending debate (from November 2022) on changing the Legal Framework, so as to cover cheated trapped buyers. "We expect the new Government to act immediately to solve this huge issue that made us a disgrace abroad", it is added.

It also refers to complaints from members and borrowers in general that recently all APIs apply practices that make restructuring difficult and more specifically ways of settling Non-Performing Loans (NPLs).

In particular, it is added, "while the borrowers are fully cooperative, since they are talking to the responsible officer and are in the process of presenting all the necessary documents/justifications that have been requested of them for their case to be examined and while they have sent a written proposal before and after contacting the competent official, the API suddenly and without warning him initiates a lawsuit and/or proceeds with a private auction process".

He states that when Directors and other officials were asked, why there is no proper coordination of the three departments, i.e. NED settlement/restructuring department, sale department and legal department in the same API, "the answer we got is that there are too many cases and indeed there is no there is agreement and coordination".

SYPRODAT notes that it has reported the matter to the Governor of the Central Bank since it considers the above answer to be "unjust and abusive to say the least.

"We hope and expect a change of mentality from the APIs so that divestments are avoided and restructurings proceed in accordance with the Directive and the Code of Conduct of the Central Bank", the announcement concludes.

Source: stockwatch.com.cy

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