The Bank of Israel is taking further measures to curb bank fees. Yesterday, the Banking Supervision Department announced rules intended to implement the recommendations of the Team to Examine How to Increase Competitiveness in the Banking System. The measures are part of an amendment to the Banking (Service to the Customer)(Fees) Rules, 5768-2008, and the publication of a Supervisory Order.
Among the main points is the declaration of the fee for notices as a supervised fee, and a cap on the fee of NIS 5. "The Team to Examine How to Increase Competitiveness in the Banking System determined that due to the high price of the service for sending notices at some of the banks (prices ranging from NIS 20 to NIS 90 per notice), and in view of the fact that this is a service that the customer can obtain only at the bank at which he manages his account, it should be declared a supervised service pursuant to Section 9k(a)(2) of the Banking (Service to the Customer) Law, 5741-1981, and if the banks do not act to lower the price of the service, then the price of the service should also be set. In accordance with the amendment, the maximum price for this service (sending notices and warnings of late payments), which is supposed to reflect direct expenses for printing and sending the notice, shall not exceed NIS 5 per notice," the Bank of Israel announcement said.
A further measure is the cancellation of the charge fee for a depositor of a check that bounces. "The amendment sets out that the banking corporation shall not be permitted to charge the depositor of a check a 'fee for the depositor of a bounced check.' Currently, a customer is charged such a fee when a check deposited into his account bounces and is not honored, regardless of the reason for the return of the check," the central bank said.
The Bank of Israel will also not allow a bank to collect card fees for a debit card it has issued to a customer who also holds a credit card issued by the same banking corporation. This amendment is intended to encourage the distribution of debit cards among customers, among other things to serve as an alternative to cash payments.
Supervisor of Banks David Zaken said: “The Banking Supervision Department continues to adopt measures with the aim of improving the customer’s ability to compare and of increasing fairness and competitiveness in the banking system.”
Published by Globes [online], Israel business news - www.globes-online.com - on March 10, 2015
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