BANKING LITIGATION - SWISS FRANC LOANS
SWISS FRANC LOANS; HOW WE CAN HELP YOU
If you have taken out a Swiss Franc mortgage loan you are certainly not alone if you are facing problems. There are risks associated with borrowing in a different currency to that of the country where the property is situated and also different to the currency of your income. By borrowing in Swiss francs, most of our clients have been exposed to a double currency exchange risk.
For the most part, none of the banks are willing to repossess properties and release their customers from these loans at the present time. This is owing to the fact that the currency loss combined with falling property prices will have caused substantial negative equity. Consequently, even if the bank or developer manages to sell the property, they will not realise sufficient funds to repay the loan. In view of this, should you default on your loan the bank will eventually terminate the loan and start court proceedings against you for the full amount owed to the bank together with interest and legal costs. Should the bank be successful and judgment is granted against you by a court in Cyprus, the judgment can be registered and enforced in the United Kingdom. Whilst it has not been the traditional policy of the Cyprus banks, we are now acting for a number of clients who have enforcement actions against them in the United Kingdom as a consequence of a bank judgment taken in Cyprus.
There is no doubt that it is better to address the situation and try to find a solution to the problem before the bank takes the step of instituting court action. Depending on the documentation that was signed at the relevant time and the manner of signing, it is possible that a case can be raised for mis-selling of the Swiss franc loan. We will need to see all documentation signed with the bank and any power of attorney which may have been given to a lawyer to sign on your behalf. We also need to know which developer and which project are involved.
We have a great deal of experience in dealing with this issue and have achieved excellent results for many clients.