Decision details
| Date | June 28, 2026 |
|---|---|
| Court | Tel Aviv-Jaffa District Court |
| Case | Not stated in the sources (early repayment class action: multi-track housing loans) |
| Type of decision | Settlement approvalClass action |
| Amount | NIS 5,500,000 |
| Topic | Early repayment fee: offsetting capitalization differences between loan tracks |
| Source | Source |
The details in this article are based on Mizrahi Tefahot Bank's immediate report to the Israel Securities Authority of June 28, 2026, in its English version, and on a report on the Bizportal (Takdin) website of July 6, 2026. We did not have the text of the judgment or of the settlement agreement, and the case number does not appear in the sources. The article is therefore short and limited to what was reported.
Background: class action over the early repayment fee on a multi-track mortgage
According to the bank's report, a motion to certify a class action was filed against it, alleging overcharging of fees on early repayment of housing loans made up of several tracks. The bank first reported the motion on October 7, 2018. Similar motions were also filed against other banks. The bank also referred to the proceeding in Note 10 to its financial statements for March 31, 2026, published on May 19, 2026.
The parties' arguments
According to Bizportal, the applicants argued that the banks allow negative capitalization differences to be offset against the early repayment fee only within the same track, and not across all the tracks of the mortgage. The claim was estimated at NIS 107 million. The banks argued that the order governing early repayment does not treat the loans under the same agreement as a single loan.
What the court decided in the Mizrahi Tefahot settlement
On June 28, 2026, the Tel Aviv District Court gave a judgment approving a settlement in the motion, and also in the motions against other banks on the same matter. According to Bizportal, the settlement was approved by Deputy President Judge Rachel Barkai.
According to the bank's report, Mizrahi Tefahot will pay NIS 5.5 million, by way of a contribution to the Class Actions Fund, as well as an award to the applicant and legal fees to his counsel (the English version of the report does not make clear whether the award and legal fees are included in this amount). It was also agreed that the disclosure the bank gives customers on how the fees are calculated will be updated.
According to Bizportal, Bank Hapoalim will pay NIS 2.7 million and Bank Leumi NIS 1.1 million. The compensation is not paid to customers but is transferred to the fund at the Ministry of Justice. It was also reported that the banks may continue offsetting capitalization differences as they have done until now, and that the court approved NIS 2.1 million in awards and legal fees.
What it means for Mizrahi Tefahot customers
According to the reports, the settlement does not pay money directly to customers and does not change the method of offsetting between tracks. The practical change reported is in the disclosure on how the fee is calculated. Approval of a settlement is not a decision on the claims in the lawsuit.
A borrower planning early repayment of a multi-track mortgage can ask the bank, before repaying, for a breakdown of the fee and of the capitalization differences in each track. More information appears in the article on early repayment at Mizrahi Tefahot and in the rulings database.
Sources
- Mizrahi Tefahot Bank immediate report, June 28, 2026 (in English)
- Bizportal (Takdin), July 6, 2026: article on the approval of the settlement in the mortgage early repayment class actions
Status and caution
The full text was not found openly online
More court rulings against Mizrahi Tefahot on mortgages and housing loans
- Civil Claim 50131-09-22 Zaghroun: Mizrahi Tefahot was negligent with a mortgage, and the customer lost an Israel Land Authority tender
- Class Action 41639-12-17 Shif: Mizrahi Tefahot will refund interest differences to variable-rate mortgage borrowers and grant a future discount
- Conflicting transactions in an apartment: Mizrahi Tefahot was negligent, and the mother's right prevailed over the pledge
- Civil Claim 2311-06 Yeshinovsky: Mizrahi Tefahot may enforce only half of the cottage
- Early repayment fee on a "supplementary loan": Mizrahi Tefahot will refund overcharged fees
All 39 decisions in the database ›
Questions and answers
What was the class action over early repayment of a multi-track mortgage about?
According to a report on Bizportal, it was alleged that the banks offset negative capitalization differences against the early repayment fee only within the same track, and not across all the tracks of the mortgage.
How much will Mizrahi Tefahot pay in the settlement?
According to the bank's immediate report, NIS 5.5 million, by way of a contribution to the Class Actions Fund, as well as an award to the applicant and legal fees to his counsel.
Will customers receive a personal refund?
According to Bizportal, no. The compensation is transferred to the class actions fund at the Ministry of Justice and not to customers.
What will change for customers following the settlement?
According to the bank's report, the disclosure given to customers on how the fees are calculated will be updated. According to Bizportal, the banks may continue offsetting capitalization differences as they have done until now.
Did Mizrahi Tefahot Bank admit a violation?
No. The decision approves a settlement, and in such a settlement the bank usually does not admit a violation. The court examines whether the settlement is fair and reasonable for the class members.
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.