New Regulation to Protect Against Abusive Clauses in All Contracts

A new legislative regulation in Cyprus gives consumers the opportunity to challenge abusive terms in contracts, even in older ones, that were concluded before 1997. The amendment to the Consumer Protection Law extends its application regardless of the date of contract signing, giving courts the ability to examine the abusive nature of clauses in any contract. This regulation is considered particularly important for borrowers and consumers with old contracts with banks, as it allows them to invoke the European directive on abusive clauses even in previous agreements. The bill was passed with 25 votes in favor and 7 against. The proposer of the bill, Stavros Papadouris, emphasized that the case law of Cypriot and European courts requires the removal of abusive clauses regardless of the time of contract conclusion. Existing legislation unfairly limited its application only to contracts after 1997. The passage of the amendment is expected to have an immediate impact on pending and future court cases concerning loan and consumer contracts, as it provides new tools for consumers to protect their rights.