There were provisions in the bill which define the ad information of the mortgage. The document orders that a comparison of percentage rate to the customers should be provided as well.
Still, in the process of counseling on this issue, some from MPs declared that the document in its present state doesn’t correspond to the protection requirements. Deputy Anna Theologou shared her opinion as well. She was concerned that the former Law of Consumer Credit had provided better warranties for clients.
The provisions of the new bill concerning life insurance occurred to be “deal breakers”, as emphasized by Theologou.
The practice of life insurance has been worked out to secure the repayment mortgage. If a person holding policy deceases during validity term of life insurance, policy have to disburse the amount which is sufficient to cover the outstanding mortgage.
MP Theologue points out, however, that the new bill involves statement requiring from the customer an insurance policy. That is equal to the ins proposed by the lender.
So the whole situation is as follows. In case the borrower applying for a residential loan possesses a life insurance from some other company, and his policy isn’t tantamount to the insurance policy of the lender, the borrower is squeezed to buy the lender’s insurance.
Some companies practice this cunning way of business. You may purchase product or service from that company only provided that you buy something else from that very company or related offices.
The MPs were told to submit their comments on the bill to Ministry of Finance for further consideration.
The request of transposing of the Mortgage Credit Directive into the domestic law was sent to Cyprus in Novemer, 2016.