Service page: Class actions and consumer claims lawyer.
“Account management charge”, “transaction charge”, “card charge”: the monthly statement of charges has quite a few lines like these. This guide explains what the law allows the bank to charge, what to check in the statement, and how to claim a refund.
When may a bank collect a charge?
The Governor of the Bank of Israel sets, in rules, a list of services for which a banking corporation may collect charges from its customers, and how they are calculated (the “full tariff”, section 9I(a) of the Banking (Service to Customer) Law). The Governor may also set limited tariffs for types of services or types of customers (section 9I(b)). The rules are the Banking (Service to Customer) (Fees) Rules, 5768-2008 (כללי הבנקאות (שירות ללקוח) (עמלות), התשס״ח-2008): the full tariff is set out in their First Schedule, and the limited tariffs, for a current account, a housing loan, a debit card and clearing, are in the Second to Fifth Schedules (rules 2–3).
The bank must inform its customers of the full tariff and of the amounts of the charges it collects (section 9I(c)), and state that it may collect amounts lower than those listed in the tariff (section 9I(c1)). For the purposes of sections 9I and 9J, a “customer” is an individual, and also a corporation that is a business as the Governor set in the rules (section 9I(f)). Under the rules, a “small business” is, for example, a corporation that has existed for less than a year since its incorporation, or a corporation that gave the bank an annual report showing that its turnover does not exceed five million shekels (rule 1).
Which rules limit the collection of charges?
The table brings together the rules that customers can check themselves against the statement of charges.
| The rule | Source | What to check |
|---|---|---|
| A charge only for a service in the tariff | Section 9J of the Law | That the service for which the charge was collected is included in the full tariff, or in the limited tariff that applies to you, or was approved by the Supervisor of Banks under section 9I(e). |
| No more than the tariff | Section 9J1 of the Law | That the charge does not exceed the amount or rate in the tariff the bank published. |
| No more than what was agreed | Section 9J2 of the Law | If a charge lower than the tariff was agreed with you, that no more than what was agreed was collected. |
| Only for a service actually provided | Section 9J3 of the Law | That the service was actually provided to you, and that no charge was collected for a service you did not receive. |
| A direct channel is cheaper than a teller | Rule 2(c) of the Rules | That a charge for a service in a direct channel, meaning without direct contact with a teller (rule 1), is lower than the charge for the same service through a teller, unless the service through a teller carries no charge at all. |
| Notice before a benefit ends | Section 5A1A of the Law | That you received notice at least 21 days before the end of a benefit on a charge or on interest that was given for a period of more than three months. |
| Raising a charge | Sections 9N–9O of the Law | A charge for a “supervised service” is collected only under an order of the Governor or a permit; a charge for another service may be raised by the bank only after it notified the Supervisor of Banks 30 days in advance. |
Which charges are worth checking first?
- Transaction charges in a current account: the bank must allow every customer to join the basic track or the expanded track, and joining takes effect on the 1st of the month after the notice (rule 4A(a)–(b)). If in every month of the financial year a customer who is a senior citizen or a person with a disability, as defined in the rules, paid transaction charges higher than what they would have paid in the basic track, the bank moves them to the basic track by 1 March of the following year and notifies them of this and of the option to cancel (rule 4A(b1)). Under the text of the rules, the provisions on the tracks are repealed on 1 July 2027.
- A charge for a transaction online or in the app: it must be lower than the charge for the same transaction through a teller, unless the transaction through a teller is provided without a charge (rule 2(c)).
- A charge after a benefit ends: if a reduced charge went up, check whether you received notice 21 days before the end of the benefit (section 5A1A(b)) and what was agreed with you (section 9J2).
- A charge for a service you did not receive: for example, an investment advice charge when no advice was given to you (section 9J3).
Charged more than agreed, misled, or did not get what you paid for?I will get back to you within one business day.
Calls and replies in English or Hebrew
What happens after you write to me
- You write what happened and with whom. No documents.
- I get back to you within one business day for a short call of a few minutes.
- If it is a matter I handle: after the call you will receive, in writing, what will be done and what the next step is. Work starts only after you approve.
At the end of the call you will know one of three things: it is a matter I handle, and what the next step is; you can manage without a lawyer, and which guide fits; or it is outside my field, and where to turn.
How do you claim a refund of a charge collected unlawfully?
- Checking: at the start of each month, the bank sends a notice with the total amount of the charges it collected in the previous month, and informs you of your right to receive a breakdown (section 5A(d)). Compare every charge with the tariff, which the bank must display in its branches and through a direct link from the home page of its website (rule 4(a)–(b)).
- A written request to the bank: according to the page of the Consumer Enquiries and Inspections Unit on the Bank of Israel website, the first step is a complaint to the bank’s public complaints commissioner and a written answer within 45 days (in certain circumstances, 60). Keep a copy of the request and of the answer. An orderly wording for such a request is described in a warning letter before a claim: what it should include and what it should not.
- Applying to the Bank of Israel: the Supervisor of Banks looks into inquiries from the public about their dealings with banking corporations. If the Supervisor finds the inquiry justified, they notify the person who applied and the bank, and set out the ways to correct the defect (section 16(a)–(b)). The Supervisor’s decision does not create a right or a remedy in court that did not exist before, and does not extend a deadline set in legislation (section 16(d)).
- Court: damage caused by a breach of the provisions of the Law is treated as damage for which compensation may be claimed under the Torts Ordinance [New Version] (section 15). An individual may sue in the Small Claims Court for up to NIS 39,900 in 2026 (section 60(a) of the Courts Law [Consolidated Version], 5744-1984); see Small Claims Court: a practical guide. When the charge concerns many customers, a claim against a banking corporation in a matter between it and a customer is one of the claims in which a motion to certify a class action can be filed (item 3 of the Second Schedule to the Class Actions Law, 5766-2006); see filing a class action: a step-by-step guide.
How long do you have to sue for a refund of bank charges?
The limitation (prescription) period for a claim that does not concern land is seven years (section 5(1) of the Prescription Law, 5718-1958), and it starts on the day the cause of action arose (section 6). Applying to the Supervisor of Banks does not extend the deadline (section 16(d)(2) of the Banking (Service to Customer) Law). So it is worth checking the breakdown of charges for recent years without waiting for the end of the inquiry.
Frequently asked questions
May a bank collect a charge for a service I did not receive?
No. A banking corporation shall not collect a charge from a customer except for a service actually provided to the customer (section 9J3 of the Banking (Service to Customer) Law). For a service that is not included in the full tariff, it may not collect any charge at all from an individual or a small business, unless the service was approved by the Supervisor of Banks (section 9J).
Where can you see the bank’s tariff of charges?
The bank must display in its branches, in a prominent place, the full tariff and the limited tariffs, and allow anyone to obtain them, among other ways through a direct link from the home page of its website (rule 4(a)–(b) of the Banking (Service to Customer) (Fees) Rules). It gives the customer the limited tariff that fits the service at the start of the service (rule 4(c)).
Can a charge for an action in the app be the same as the charge at a branch?
Under rule 2(c) of the Banking (Service to Customer) (Fees) Rules, a charge for a service in a direct channel must be lower than the charge the bank set for the same service through a teller, unless the service through a teller carries no charge at all. “In a direct channel” means without direct contact with a teller (rule 1).
Has something similar happened to you?You can write to me what happened and with whom, without documents.
Calls and replies in English or Hebrew
Do you have to contact the bank first before complaining to the Bank of Israel?
According to the page of the Consumer Enquiries and Inspections Unit on the Bank of Israel website, the first step is a complaint to the bank’s public complaints commissioner and a written answer within 45 days. If the answer is not satisfactory or did not arrive, you apply to the Unit in writing. The Supervisor of Banks looks into the inquiry under section 16 of the Banking (Service to Customer) Law.
How long do you have to sue for a refund of bank charges?
The limitation (prescription) period for a claim that does not concern land is seven years (section 5(1) of the Prescription Law), from the day the cause of action arose (section 6). Applying to the Supervisor of Banks does not extend a deadline set in legislation (section 16(d)(2) of the Banking (Service to Customer) Law).
Sources
- Banking (Service to Customer) Law, 5741-1981 (sections 5A, 5A1A, 9I–9O, 15, 16)
- Banking (Service to Customer) (Fees) Rules, 5768-2008 (rules 1–4A)
- Bank of Israel: the Consumer Enquiries and Inspections Unit (in Hebrew)
- Prescription Law, 5718-1958 (sections 5–6)
- Courts Law [Consolidated Version], 5744-1984 (section 60)
- Class Actions Law, 5766-2006 (Second Schedule, item 3)
The links lead to the original legislation (in Hebrew) and to the official Bank of Israel page. The binding text of the legislation is the one published in Reshumot (the official gazette).
Checklist
- Practical tip: before a claim, ask the bank for the breakdown of charges for the relevant period (the monthly notice must inform the customer of the right to a breakdown, section 5A(d)(4)) and for the tariff that applied in that period. Keep the request and the answer.
- Important to know: damage caused by a breach of the Banking (Service to Customer) Law is treated as damage for which compensation may be claimed under the Torts Ordinance, even if it is a financial loss only (section 15).
- Common mistake: checking only the latest charge. Check the whole period within the seven-year limitation period (section 5(1) of the Prescription Law).
- Tactical point: consider filing a class action if you found that the policy is systematic, not only toward one customer. A claim against a banking corporation in connection with a matter between it and a customer is one of the claims in which certification of a class action can be requested (item 3 of the Second Schedule to the Class Actions Law).