Lawsuit Against a Bank for Fees in Petach Tikva

What is a Lawsuit Against a Bank for Fees?

Banks in Israel charge their customers various fees for banking services — account opening fees, annual fees, transaction fees, credit card issuance fees, inter-bank transfer fees, digital service fees, and more. In recent times, the Israeli public has become more aware of the fact that some of these fees may be unfair, excessive, or were not presented to the customer in a clear and acceptable manner.

A lawsuit against a bank for fees is a civil lawsuit that imposes on the bank an obligation to refund you the fees it charged unjustly, or to prove that the collection was lawful. This lawsuit may be collective (meaning on your behalf and on behalf of others who were harmed similarly) or personal, depending on the circumstances of the case.

The Mendelboums, Gor, Witzman-Gor and Partners law firm has been engaged in civil-commercial lawsuits of this type since 2008, and represents claimants in Petah Tikva, Ramat Gan, and the central region in matters of consumer rights violations and lawsuits against financial institutions. In any case, we examine all evidence, agreements, and correspondence between you and the bank to determine whether there is a legal basis for the lawsuit.

Types of Banking Fees That May Be Unfair

Not every fee charged by a bank is necessarily unfair or unlawful. However, there are cases where a bank may violate your rights as a consumer:

• Fees that were not brought to your attention clearly: If the bank did not explicitly and acceptably disclose the existence of a certain fee, or disclosed it in small print that is difficult to discern, the bank may not have had the right to collect it.
• Fees that changed without prior notice: A bank must notify you in advance of any change in fees and give you the right to cancel the account without cost. If this did not happen, the lawsuit may be justified.
• Excessive or unreasonable fees: Under the Consumer Protection Law, there is an obligation that terms in a consumer contract should not be unfair. A fee that is excessive or disproportionate to the service offered may be considered unfair.
• Fees for services you did not request: If the bank charged you a fee for a service you did not request or did not use, it may be unlawful.
• Duplicate or incorrect fees: Banking errors resulting in the collection of a fee more than once or in an incorrect amount.

What Are Your Rights as a Bank Customer in Petah Tikva?

In Israel, a bank customer enjoys numerous legal protections, established in the Consumer Protection Law and additional laws. Among the main rights:

• Right to be informed: The bank must notify you of any change in the terms of service, including changes in fees, before they take effect.
• Right to know the terms: The bank must provide you with a copy of the agreement in writing, and all terms must be clear and understandable.
• Right to protection from unfair terms: The Consumer Protection Law prohibits unfair terms in a consumer contract, and this includes unfair fees.
• Right to sue: If the bank has violated your rights, you have the right to file a lawsuit in court for compensation of damages, including fees charged unjustly, and in some cases also compensation for violation of consumer rights.

Claim Process Against a Bank for Fees — Main Stages

When you turn to Mandelboim, Gor, Witzman-Gor & Co. regarding a claim against a bank for fees, we take you through a structured and professional process. Here are the main stages:

1. Initial Consultation and Document Review

During the initial consultation meeting (which is free of charge), we listen to your story in full detail. We ask you about the type of fees charged, for which services, how long you were a bank customer, and why you believe the fees were unfair. We then ask you to bring all relevant documents: your agreement with the bank, account statements, bank notices regarding fee changes, monthly account statements, your correspondence with the bank, and any other document that may be relevant.

2. In-Depth Legal Analysis

After we have collected all documents, we conduct a thorough legal analysis. We examine your agreement with the bank in light of consumer protection laws, general contract law, and relevant rulings of Israeli courts. We check whether the bank fulfilled its obligations to notify you clearly about the fees, whether they were reasonable in the given context, and whether there is a legal basis for the claim. Each case is examined on its own merits, taking into account its unique circumstances.

3. Notice to Bank and Settlement Attempts

If there is a reasonable legal basis for the claim, we send a formal notice to the bank, describing your allegations and demanding repayment of the unfairly charged fees. At this stage, many banks prefer to comply with the demand and return the funds to avoid legal costs and public exposure. We conduct professional negotiations with the bank, tactfully but firmly, to achieve a fair settlement.

4. Filing a Lawsuit in Court (If Required)

If the bank refuses to return the funds, we file a lawsuit in the competent court (usually a District Court or Regional Court, depending on the claim amount). We prepare all necessary documents, including a detailed statement of claim, evidence, expert opinions (if required), and any additional material that could strengthen your case.

5. Representation in Court

We represent you at every stage of the legal proceedings — from the initial hearing of arguments, through the submission of evidence, to witness testimony and trial day. We draw on our experience of over 18 years of representing claimants in tort and civil-commercial claims, to present your case in the strongest possible manner.

6. Obtaining a Judgment or Settlement

At the end of the process, the court will issue a judgment or you will reach a settlement with the bank. In either case, the goal is for you to receive the funds that were unfairly charged to you, and in some cases, additional compensation for violation of consumer rights.

Typical Cases of Claims Against Banks for Fees

To better understand which cases may form the basis for a claim, here are some typical examples:

Example 1: Fee Not Properly Disclosed

A customer opened a bank account and selected a "basic" service package. After a few months, the bank began charging a monthly fee for "financial advisory services." The customer claims he was not clearly notified of this fee, and it appeared only in small print on page 15 of the agreement. In such a claim, we argue that the bank breached its obligation to disclose the fee clearly and explicitly, and therefore has no right to collect it.

Example 2: Change of Fees Without Prior Notice

A customer had been a bank customer for years. Suddenly, the bank changed the annual fee from 100 shekels to 250 shekels without prior notice. The customer discovered this only when he saw his bank statement. In such a claim, we argue that the bank breached its obligation to notify of a change in terms in advance and to give the customer the right to cancel the account without cost.

Example 3: Fee for Unsolicited Service

A customer received notice from the bank that he was charged a fee for an "international credit card." The customer claims he did not request this card and did not use it. In such a claim, we argue that the bank charged a fee for a service that was not requested and not provided, which constitutes a violation of consumer rights.

Example 4: Excessive Fees

A customer made an inter-bank transfer. The bank charged a fee of 150 shekels for the transfer. The customer claims the fee is excessive and not proportional to the service provided. In such a claim, we examine the fee schedules of other banks and compare whether the fee is reasonable or excessive compared to the market.

Example 5: Duplicate Fee

A customer noticed that the bank charged him the same fee twice in one month. This is a banking error, but the bank refuses to refund the money. In such a claim, we argue that the bank charged a fee in error and must refund it immediately once the matter is brought to its attention.

Legal Costs and Payment Terms

An important question many ask is: "How much will it cost me to sue the bank?" The answer depends on the circumstances of the case, but here are the main points:

Legal Costs in Civil Claims

In a civil claim in Israel, there are various legal costs: court filing fees, attorney fees, expert costs (if required), attorney fee charges, and more. Generally, in small claims (up to a few thousand shekels), legal costs can be substantial relative to the claim amount. However, in larger claims or class action lawsuits, legal expenses are distributed among a large number of claimants, making the claim more worthwhile.

Payment Terms and Options

The Mandelboin, Gor, Witzman-Gor and Partners law office works in different ways with claimants, depending on the circumstances:

• Contingency Fee: In some cases, we agree to work on a contingency fee basis from the money recovered for you. That is, if we achieve a settlement or win in court, we receive a portion of the money we recovered, and you receive the remainder.
• Fixed Fee: In other cases, we work on a fixed fee basis, determined in advance in an agreement with the client.
• Hybrid: In some cases, we work on a combination of fixed fees and a contingency fee based on results.

In any case, we discuss payment terms with each client privately, so it is clear and without surprises. Our first meeting with each client is at no cost, so we can evaluate the case and offer fair payment terms.