Decision details
| Date | January 31, 2018 |
|---|---|
| Court | Central District Court |
| Case | Not stated in the source (fees class action in "individual" and "small business" accounts filed in March 2015) |
| Type of decision | Certified as a class action, not yet decided on the merits |
| Amount | Not set / not published |
| Topic | Fees class action: fee for issuing a bank guarantee to individuals and small businesses |
| Source | Source |
The details on this page are based on Mizrahi Tefahot Bank's annual report for 2018, in the note on contingent liabilities. We did not have the text of the decision itself, and the case number and the names of the parties do not appear in the report. This is a decision certifying the conduct of a class action, not a decision on the merits.
Background: class action over fees in "individual" and "small business" accounts at Mizrahi Tefahot
According to the report, in March 2015 a claim was filed against the bank in the Central District Court, together with a motion to certify it as a class action. The claim was of allegedly overcharging fees in "individual" and "small business" accounts, contrary to the Banking (Customer Service) (Fees) Rules, 5768-2008.
According to the plaintiff, the bank charged holders of such accounts fees for certain services at rates higher than the rates set in the fee schedule for large corporations. The plaintiff argued that he is unable to estimate the damage to the class members.
What the court decided on the bank guarantee issuance fee
According to the report, the bank's response was filed on June 30, 2015, and the Bank of Israel filed its position on December 15, 2015. The court recommended that the parties try to reach a settlement, and later an evidentiary hearing was held in July 2016 and summations were filed.
On January 31, 2018, the court certified the conduct of a class action regarding one fee only: the fee charged for issuing a bank guarantee. The motion regarding the other fees was rejected. Dates were set for filing a statement of claim and a statement of defense.
On January 6, 2019, the court approved a substitute representative plaintiff, at the applicant's request. On January 20, 2019, it approved the wording of the public notice on the certification of the class action, and the hearing of the claim was set for September 18, 2019. The report does not describe the further course of the proceeding.
What it means for Mizrahi Tefahot customers
According to the report, the certified proceeding concerns the fee for issuing a bank guarantee in "individual" and "small business" accounts. Certification of the class action is not a finding that the fee was charged unlawfully, and the outcome of the proceeding does not appear in the source.
Further proceedings on "small business" classification and fees appear on the page Leave to Appeal (Civil) 8674/19 Shefagat and on the class actions page.
Sources
Status and caution
The full text was not found openly online; details according to a report, not yet verified against the text of the decision
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
- The fee information exchange affair: Mizrahi Tefahot will pay NIS 4.85 million under a consent decree
- 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
Was a class action certified against Mizrahi Tefahot over the bank guarantee fee?
Yes. According to the bank's annual report for 2018, on January 31, 2018 the Central District Court certified the conduct of a class action regarding the fee for issuing a bank guarantee, and rejected the motion regarding the other fees.
Which accounts did the claim concern?
According to the report, "individual" and "small business" accounts. It was alleged that the bank charged them fees at rates higher than those set in the fee schedule for large corporations.
Was it held that Mizrahi Tefahot charged the guarantee fee unlawfully?
No. The decision only certified the conduct of the claim as a class action. The report does not describe a decision on the merits.
Did Mizrahi Tefahot Bank admit a violation?
No. At this stage the court only certified the claim as a class action. Whether the bank broke the law will be decided later in the proceeding.
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