Complaints by the public against banks rose 23% in 2004, but the number of justified complaints fell. The Bank of Israel Banking Supervision Department ordered the banks to refund NIS 51 million to customers for improper charges.
Bank also refunded NIS 2.4 million to customers in hundreds of justified complaints. The banks have refunded NIS 107 million altogether to customers over the past three years, the Banking Supervision Department announced today.
The Banking Supervision Department public complaints unit received 5,340 complaints against the banks in 2004. The unit processed 5,467 complaints in 2004, a rise of 18%. The number of complaints has been rising steadily, as the public becomes more aware of its consumer rights.
Only 26.4% of the complaints filed last year were found to justified in whole or in part, compared with 29% of the complaints filed in 2003, and 41% in 1999. The proportion of justified complaints has been falling steadily in recent years, which the Bank of Israel attributes to the Banking Supervision Department's comprehensive handling of bank-customer relations.
The public's complaints against the banks cover a wide range of issues, including the canceling of liens, accounts of minors, deposits, loans, bank charges, and the canceling of insurance policies by mortgage banks. Almost of the refunds paid last year - NIS 50 million - were paid by Bank Leumi (TASE: LUMI) for improperly charging customers for its Leumiphone service.
Published by Globes [online], Israel business news - www.globes.co.il - on January 25, 2005