"Fair and reasonable" was judged by the Financial Commissioner Pavlos Ioannou a complaint submitted by a citizen in his Office, against the former Cooperative Bank of Cyprus and consequently of KEDIPES LTD, for exemption from guarantee obligations.
According to a decision of the Commissioner dated 04/08/2020, which was made public today, the specific citizen had complained about the breach of a contractual guarantee agreement by the former Cooperative Cyprus Bank and asked for an exemption from this guarantee obligation due to this due to default.
Specifically, the citizen complained that the Cooperative had not informed him, as it should, that the loan in which he was a guarantor was not paid by the first borrower, something that was informed by chance.
"The request was considered fair and reasonable, due to a series of unconventional and illegal actions of the creditor", the Commissioner states in his decision, who asks the creditor "to release the complainant from his guarantee obligation".
"[…] The former Cooperative and KEDIPES, acted in a manner that blatantly violated the provisions of the guarantee agreement, and also in violation of a series of provisions" of the relevant Laws. Therefore, as stated, "they acted against the contractual rights of the complaining guarantor. Therefore, the complainant is entitled to exemption from the guarantee agreement in question […] '.
«[…] The complaint is fully substantiated. Therefore, KEDIPES must release the complainant from his guarantee obligations ", the Commissioner concludes in his decision.