Received a Warning Letter From doValue in Cyprus? What UK Borrowers Should Do

If you have recently received a recorded delivery, "without prejudice" letter from a company called doValue in Cyprus, you are not alone. Thousands of UK based owners of Cyprus property, many with Swiss Franc (CHF) housing loans taken out between 2005 and 2010, are receiving the same letter. For most, it is the first contact about the loan in years.

Receiving a doValue letter does not mean your situation is hopeless. Judicare's specialist solicitors have helped hundreds of UK borrowers with Swiss Franc mortgage problems in Cyprus, including cases involving doValue. This guide explains who doValue is, why you have received a letter, and what to do next.

Who is doValue and Why Are They Writing to You From Cyprus?

doValue is not your original lender. It is one of the largest credit servicing groups in Southern Europe, managing non-performing loan portfolios on behalf of banks and investors. doValue Cyprus does not own your debt: it manages and collects on credit facilities originally issued by a Cypriot bank, commonly Alpha Bank Cyprus or a Bank of Cyprus mortgage product, and later sold on.

In many current letters, doValue writes on behalf of SKY CAC Limited, a licensed Cyprus credit acquiring company that bought a portfolio of credit facilities from Alpha Bank Cyprus under Cyprus Law 169(I)/2015, which allows Cypriot banks to sell non-performing loans to third parties without the borrower's consent. doValue acts as servicer on SKY CAC's behalf.

Our page on Swiss Franc mortgages in Cyprus explains why these loans became unaffordable and what your legal options may be.

Why You Have Received the Letter Now

Many borrowers stopped paying their Cyprus mortgage years ago, often once the Swiss Franc strengthened sharply against the euro and sterling, and heard nothing further. It is easy to assume the debt was forgotten. It was not.

Cypriot banks have spent the last decade clearing non-performing loans from their books, often by selling them in bulk to specialist debt purchasers and vulture funds. Once a portfolio changes hands, the new owner typically writes to every borrower to re-establish contact. Our guide to vulture funds in Cyprus explains how these purchasers operate.

What the "Without Prejudice" Wording Actually Means

Many borrowers assume "without prejudice" means the letter is not serious, or that the bank's position is weak. That is a mistake. The wording is a genuine legal mechanism: it means the contents generally cannot be used as an admission in later proceedings, allowing both sides to discuss settlement openly.

In practice, the letter is often an opening position, not a final demand, but it will not disappear if left unanswered.

Should You Respond to doValue?

Yes, but not without first understanding your legal position. A doValue letter is often the first genuine opportunity in years to resolve a Cyprus mortgage problem many owners believed had gone away. Ignoring it does not stop the clock, and responding without advice can mean accepting worse terms than could realistically be negotiated.

We would generally advise against contacting doValue directly before speaking to a solicitor, since anything you say can shape the outcome once you engage.

The Solutions doValue Typically Offers (and How to Read Them)

Letters from doValue, acting for SKY CAC or another purchaser, generally set out one or more of the following:

• Surrender of the property: handing it back to release you from liability.
• Full and final settlement: a reduced lump sum, often at a significant discount, closing the debt entirely.
• Loan restructuring: revised terms, sometimes with a reduced balance or currency conversion, keeping the property.

These can sound straightforward, but the figures first proposed are rarely the best outcome available. A solicitor experienced in these cases can usually negotiate more favourable terms and check that any settlement properly releases you from the debt and any related security.

Risks of Ignoring a doValue Warning Letter

Doing nothing is the highest-risk option. If a borrower fails to engage, doValue typically reports this to SKY CAC or the underlying creditor:

• Proceedings can be issued in Cyprus for the full balance, plus interest and costs.
• A default judgment obtained there can, in certain circumstances, be enforced against UK assets, including through a Charging Order.
• Interest and costs continue to accrue the longer the matter is left.
• The eventual settlement figure is likely to be far higher than what could have been agreed at the warning letter stage.

If you have already received a Writ of Summons or other court documents, please contact us urgently.

Your Rights as a UK Borrower

Receiving a letter from a Cypriot debt purchaser does not mean you have no options. UK courts have shown a willingness to scrutinise how Swiss Franc mortgage schemes in Cyprus were marketed. In the Alpha Panareti litigation, the English Court of Appeal upheld a finding that a Cyprus based developer had been negligent in failing to warn UK buyers of the currency risk attached to their Swiss Franc mortgages. That case does not automatically apply to every borrower, but it shows mis-selling can form a genuine legal challenge.

You also have the right to:

• Request full documentation on the original loan and any sale of the debt.
• Query whether the sale complied with Cyprus Law 169(I)/2015.
• Seek independent legal advice before agreeing to any settlement.
• Have a solicitor assess whether the debt may be time-barred, or whether currency risk was properly explained at the outset.

See our page on mortgage problems in Cyprus for more on the wider issues affecting owners in this position.

Why You Should Not Use an Unregulated Claims Management Company (CMC)

These letters have led to a rise in unregulated claims management companies and "advisory firms" offering to resolve Cyprus mortgage problems for a fee. Unlike a solicitor, a CMC is not regulated by the Solicitors Regulation Authority (SRA), carries no professional indemnity insurance, and cannot represent you in Cyprus court proceedings.

If a CMC negotiates a poor settlement or oversteps its authority, you may have little redress. A regulated Cyprus property lawyer, working with qualified local counsel, gives you representation and a regulatory safety net if something goes wrong.

How Judicare Can Help

Judicare is a UK based, SRA-regulated law firm with over a decade of experience handling Swiss Franc mortgage problems in Cyprus, including cases involving doValue, SKY CAC, Alpha Bank Cyprus, and Bank of Cyprus mortgage products. We are not a claims management company. You deal directly with qualified solicitors who understand both UK and Cypriot law, working with trusted Cyprus property lawyer contacts on the ground.

We have negotiated over €60 million in foreign bank debt write-offs for clients, with direct experience of doValue and the purchasers it acts for. We offer a free, no-obligation initial review of your documentation.

Next Steps if You Have Received a doValue Letter

If a doValue warning letter has landed on your doormat:

1. Do not ignore it or assume it will go away.
2. Do not contact doValue, or sign anything, before taking legal advice.
3. Gather your documentation: the original loan agreement, correspondence, and payment records.
4. Contact a solicitor experienced in Cyprus mortgage problems for a free review.
5. Act promptly, since response windows can be short.

Call us on 01438 840 258 or contact us online to arrange your free initial review.

Frequently Asked Questions

Is a doValue warning letter a court summons?

No. It is a without prejudice communication inviting settlement, not a court document. Ignoring it can still lead to court proceedings later, so it should be taken seriously.

Can doValue enforce a Cyprus judgment against me in the UK?

If SKY CAC or another creditor obtains a judgment in Cyprus, it can, in certain circumstances, be enforced against UK assets, including through a Charging Order. This is a formal process and can often be challenged, particularly where the original proceedings were not properly served.

How long do I have to respond to a doValue letter?

Deadlines vary and are set out in the letter, but they are often shorter than expected. Contact a solicitor as soon as you receive it so there is time to review your options properly.

What is SKY CAC Limited and how is it connected to doValue?

SKY CAC Limited is a licensed Cyprus credit acquiring company regulated by the Central Bank of Cyprus. It purchased historic Swiss Franc mortgage debt from Alpha Bank Cyprus under Cyprus Law 169(I)/2015. doValue is appointed as servicer for SKY CAC's portfolio, which is why correspondence arrives in doValue's name.

Can I get my Swiss Franc mortgage written off completely?

Sometimes. A full write-off, effectively surrendering the property for release from the debt, can be realistic where the property has fallen significantly in value. In other cases, a part settlement or restructuring suits better, and our solicitors can advise on what is realistically available.

Is the debt statute-barred if the loan is 15+ years old?

Possibly, but this depends on the facts, including when a formal demand was made and whether payments were made more recently. Limitation periods do not always run from the date the loan began, so this needs a proper legal review before assuming a debt is time-barred.

Will responding to doValue affect my UK credit file?

Historic Cyprus mortgage debt does not generally appear on a UK credit file, since it was not advanced by a UK regulated lender. Unresolved foreign debt can still carry financial and legal consequences, including enforcement against UK assets, so this is not a reason to delay taking advice.

Do I need a Cyprus-based lawyer or a UK solicitor?

Ideally both, working together. A UK solicitor experienced in cross-border property disputes can manage the process from the UK and correspond with doValue directly, coordinating with trusted local counsel in Cyprus where court representation is needed.

Speak to a Cyprus Mortgage Specialist Today

If you have received a warning letter from doValue, or are concerned about a Swiss Franc mortgage problem in Cyprus, our specialist solicitors are here to help. Call us on 01438 840 258 or make an enquiry to speak to a member of our team.

We can also arrange a free, no-obligation consultation via Zoom or Teams. Getting in touch is the first step towards resolving the matter on your terms.