The Central Bank of Cyprus (CBC) informs the public that the Committee for the Out-of-Court Settlement of Disputes (“Committee”) which was established by the CBC in April 2010 and operates under section 79 of the Payment Services Law, 2009 and 2010, has also assumed the duty for the out of court settlement of disputes which the CBC is responsible in accordance with the Electronic Money Law, 2012.
Pursuant to the Payment Services Law, 2009 and 2010, the CBC deals with disputes arising from payment services provided, inter alia, by banks and payment institutions. All business activities that fall under the term “payment services” are listed in the Annex of the Payment Services Law, 2009 and 2010 and relate to, inter alia, the execution of direct debits, payment transactions through a payment card (debit or credit card) and credit transfers as well as money remittance. The Payment Services Law, 2009 and 2010 has been posted on the CBC website.
Moreover, pursuant to the Electronic Money Law, 2012, the CBC deals with disputes arising from the issue and redemption of electronic money, inter alia, by banks and electronic money institutions licensed by the CBC. The term “electronic money” covers situations where a pre-paid stored value is issued in exchange for funds, which can be used for payment purposes. The Electronic Money Law, 2012 has been posted on the CBC website.
It should be noted that after the commencement of the operation of the Financial Ombudsman, the CBC’s responsibilities for the Out-of-Court Settlement of Disputes by virtue of the above laws will be restricted to those disputes that do not fall under the responsibility of the Financial Ombudsman.
Finally, the CBC wishes to clarify that the Committee does not issue binding decisions and, therefore, it is up to the parties involved to decide whether they will reach an out of court settlement.