Decision details
| Date | June 23, 2014 |
|---|---|
| Court | Antitrust Tribunal |
| Case | Consent decree: the affair of the exchange of fee information among the banks (Antitrust Tribunal) |
| Type of decision | Consent decree |
| Amount | NIS 4,850,000 |
| Topic | Restrictive arrangement: exchange of fee information among the five banks |
| Source | Source |
What this page is based on
According to a report by Daniel Kabilio on the Bizportal website of June 23, 2014, the Antitrust Tribunal approved on that day a consent decree in the affair of the exchange of fee information among the five largest banks. The details here are based on the report only, because the full text of the decree was not found openly online.
Background: the determination on the exchange of fee information among the banks
According to the report, the statement of claim alleged that from the early 1990s until late 2004 restrictive arrangements existed among the five largest banks concerning the exchange of information relating to fees. According to the report, this concerned banking services for households and small businesses.
In 2004 a criminal investigation was opened, and according to the report not enough evidence was found to file an indictment against the banks. In April 2009 the Antitrust Commissioner determined that restrictive arrangements had existed concerning exchanges of fee information. The five banks filed an appeal against the determination to the Tribunal. The case was first referred to an outside mediator, and later returned to the Tribunal.
What the Antitrust Tribunal approved
According to the report, Judge Nava Ben Or approved the consent decree submitted by the Antitrust Commissioner. Under the outline, the five banks will pay together NIS 70 million to the State Treasury. If they reach settlements with the plaintiffs in the class actions on the subject, the sum will be transferred directly to the consuming public.
Mizrahi Tefahot Bank's share
According to the report, Leumi and Hapoalim will pay NIS 21.4 million, Discount will pay NIS 14.3 million, First International will pay NIS 8 million, and Mizrahi Tefahot will pay NIS 4.85 million.
The judge's reasoning according to the report
According to the report, the judge wrote that the outline has the good of the customer public in mind. She added that this does not oblige the class plaintiffs or the banks to settle. According to the report, the judge noted that the sum raises the enforcement bar in the field and takes the mediator's proposal into account. She also wrote, according to the report: "A practice of exchanges of information between competitors is a practice that may constitute a violation of the law, but as a rule, its severity is less than a practice of price coordination".
What it means for Mizrahi Tefahot customers
The consent decree dealt with the exchange of fee information among the banks, and not with charging a specific fee in a customer's account. According to the report, the outline linked the payment to the class actions on the subject, so that the money might reach consumers through a settlement.
The report does not specify whether such settlements were reached and what their terms are. Class actions against the bank are collected on the page Class actions against Mizrahi Tefahot.
Sources
Status and caution
The full text was not found openly online
More court rulings against Mizrahi Tefahot on fees
- Class Action 28695-05-16 Shefagat: settlement approved with Mizrahi Tefahot over small business classification
- Class Action 2959-01-19 Keren Aviv: Mizrahi Tefahot ordered to pay NIS 82.4 million over a warning notice fee
- Class Action 39049-04-21 Cyberlogic: Mizrahi Tefahot will refund securities redemption fees
- Class Action 30742-08-18 Tidan: Mizrahi Tefahot will credit businesses for quarterly management fees
- Leave to Appeal (Civil) 8674/19 Shefagat: Supreme Court orders Mizrahi Tefahot and Igud to provide data on "small business" classification
- Class Action 2959-01-19 Keren Aviv: court holds Mizrahi Tefahot unlawfully charged a warning notice fee
- Bank guarantee issuance fee: class action certified against Mizrahi Tefahot
- Excess tax withheld at source: settlement in a class action against Mizrahi Tefahot and other banks
- Zimmerman v. Mizrahi Tefahot: class action certified over the minimum fee on a securities deposit
All 39 decisions in the database ›
Questions and answers
How much did Mizrahi Tefahot pay under the consent decree in the bank fees affair?
According to a report on Bizportal, Mizrahi Tefahot's share was NIS 4.85 million out of the NIS 70 million that the five largest banks undertook to pay.
What was the allegation against the banks in the fee information exchange affair?
According to the report, it was alleged that from the early 1990s until late 2004 restrictive arrangements existed among the five largest banks concerning the exchange of fee information, in services for households and small businesses.
Where did the money from the consent decree go?
According to the report, the sum was to be paid to the State Treasury, unless the banks reached settlements with the class plaintiffs, in which case the sum would be transferred directly to the consuming public.
Who approved the consent decree?
According to the report, the decree was approved on June 23, 2014 in the Antitrust Tribunal, by Judge Nava Ben Or.
Where can I read the full text?
The full text was not found openly online. You can search for it by case number in the Net HaMishpat database of the Israeli Judiciary.
Read also
- Small business or large business? Mizrahi Tefahot will pay NIS 17,855,040 in a settlement over company classification
- Early repayment at Mizrahi Tefahot: what happens when a borrower asks to pay off the loan and nobody answers?
- How do you know how much you really owe Mizrahi Tefahot Bank?
- Class actions against Mizrahi Tefahot Bank: all settlements, judgments and certifications