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Update: Co-op clients say accounts blocked because of NPLs

June 22, 2018 at 1:20pm
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Co-op clients have had their accounts blocked because of non-performing loans, Philenews reported on Friday.

It said that clients had been unable to use their credit cards as from yesterday, without having received any prior warning.

It gave the example of one woman who contacted her co-op and was told that employees there were only today informed about the blocking of accounts, including deposit accounts.

She said she had not been informed in advance but was told that she could draw the sum of her salary from her deposit account, but not the full sum, from a specific co-op branch.

She added that she had been negotiating with the bank to restructure her loan.

The co-op told the site that it was a customary banking practice to block deposit accounts when their owners have non-performing loans.

It said that the money was not removed from the account but blocked, adding that this was not the first time this has occurred. The aim is for a settlement to be reached on the loan

Philenews said about 2500 accounts were affected which represent only 0.1% of the CCB’s deposit accounts. Sums over €2,500 have been blocked in savings accounts and the entire sum in current accounts.