Complaint Regarding Icelandic Authorities Sent to ESA Skip to content

Complaint Regarding Icelandic Authorities Sent to ESA

The Interest Association of Households and the Association of Debtors have along with approximately 1,000 individuals sent a formal complaint to ESA, the EFTA Surveillance Authority, because of alleged violations by the Icelandic government and administration of European laws regarding currency-indexed loans and indexation.

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From central Reykjavík. Photo by Páll Stefánsson.

“We are hoping that our cause will be heard in Europe; that will not happen in Iceland,” commented Supreme Court lawyer Björn Thorri Viktorsson, who represents the group, to Fréttabladid.

The complaint is in regard to judicative, legislative and executive powers because of alleged violations of the European directive on consumer protection, which says, among other items, that consumer agreements cannot be amended so that they burden consumers and aren’t retroactive.

“It is about people having over-collected immense interest on these loans and then the system reacts by helping people to hand back only a part of it after the loans were ruled illegal,” Viktorsson explained.

Two non-Icelandic consumers, one from Spain and the other from Germany, have part in the complaints because of loans they were granted in connection with real estate purchases in Iceland.

The European Commission and the president of the European Parliament have also been notified of the complaint and their assistance has been requested within the framework of Iceland’s membership negotiations with the European Union.

Click here to read more about currency-indexed loans being ruled illegal.

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