Hundreds of brits begin legal action on bank

Hundreds of Brits are beginning to take legal action against Alpha Bank after mortgages taken out on Cypriot properties went sour.

The plaintiffs argue that the bank reneged on its duty of care for the buyers, who claim they were not made of aware of exchange rate risks and were given no other option during the purchasing process.

 The Athens-based bank allegedly mis-sold apartments in Cyprus to vulnerable investors. Not only were the units not built - which means that the buyers are still yet to receive their title deeds - it is also alleged that some documents were forged to secure higher interest rates from the investors.

“A large number of people were induced by misrepresentation to buy properties off-plan in Cyprus, and instead of getting a good investment they lost all their money,” commented lawyer Katherine Alexandre-Theodotou.

The case has attracted a lot of media attention in recent years, with the BBC even featuring it in a documentary.

Global edge added at the time:  “One owner speaking on the programme explains how he is paying over £2000 a month on a mortgage taken in out in Swiss Francs for an uncompleted property which is now worth less than half what he paid for it.”

With the Cypriot banking sysme in full crisis mode, though, compensation may still be quite a way away.