The issue of the protection of borrowers under a European Directive and the relevant decisions of the EU Court was raised by MEP Costas Mavridis (DIKO – S&D), as a negotiator on behalf of his political group in the European Parliament report on the Banking Union, in a debate with the of the European Banking Authority, JM Campa.
Specifically, Mr. Mavridis explained the widespread use of abusive terms and practices by banks with catastrophic illegal over-indebtedness to the detriment of borrowers, especially in those Member States (such as Cyprus) which do not fulfill their obligation under the European Directive on abusive clauses (93/13 / EEC), for the existence of “appropriate and effective means” to put an end to such illegal practices. As Mr Mavridis pointed out, in the immediately preceding report on the Banking Union, the European Parliament called on the European Supervisory Authorities to exercise their maximum powers and powers to ensure consumer protection in practice, as required by European law. .
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In addition, Mr. Mavridis raised the issue of the sale of assets by banks in Cyprus, including the first home, in cases where there is a substantiated claim by the borrower for abusive charges. Mr Mavridis referred to Article 6 of the Abusive Clauses Directive which provides that (a) abusive clauses and charges are not binding on borrowers and must be removed; (b) the contract remains binding on the parties if it can clauses. Mr. Mavridis explained that the sale of the borrower's property in exchange for his right to compensation, if at the end of a time-consuming and largely ineffective legal process his appeal is justified, is contrary to the provisions and purposes of the relevant European Directive.
Mr JM Campa said the European Banking Authority had made consumer protection one of its top priorities and made it clear to the relevant services in the Member States. Regarding the effective implementation of the protection of borrowers, he pointed out that the choice of the means for the effective implementation of European legislation is left to the Government of the Member State. He also stressed the important role of domestic courts in the use of European law, but also the EU Court of Justice with its guiding decisions.
