Credit Card Firm CAL to Refund $1.1 Million to Customers

Israeli credit card company CAL will pay NIS 4 million (approximately $1.1 million) to customers following a class-action lawsuit settlement approved by the Central District Court in Lod. The lawsuit, filed in 2020, alleged that CAL failed to adequately notify customers about the end of temporary credit card fee waivers.

The core of the claim was that CAL included these notifications within monthly statements rather than providing separate, clear notices. This practice affected customers with non-bank credit cards who received temporary fee exemptions between 2015 and 2021. After the exemption period ended, these customers began being charged the regular fees.

Under the settlement, customers whose benefits ended between 2015 and 2019 will receive a refund of 50% of their monthly card fees. Those whose benefits ended between 2019 and 2021 will get approximately 90% back. The refund is capped at one month's fee, around NIS 15 (about $4), based on the assumption that customers would be aware of the change after the first month of being charged.

The settlement also includes fees for the representative plaintiff and legal counsel, totaling 25% of the refunded amount plus VAT, with the lawyer receiving 23.5%. The report notes that CAL changed its notification method in 2021 after a separate class-action lawsuit. While notices still appear on statements, they are now more prominent, highlighted at the top of the statement and presented in a distinct, bolded box with larger font.

According to the approved settlement, the affected customer group has no further claim against CAL from 2021 onwards. The original lawsuit argued that CAL had an enhanced duty of good faith and that ending a fee waiver constituted a significant change in contract terms, requiring a distinct and clear notification to allow customers to react accordingly. CAL maintained that its previous notifications were clear and conspicuous.