Five Steps to Save Money: From Bank Fees to Winning Complaints

Israeli consumers can significantly reduce unnecessary expenses by following a five-step process that focuses on mapping out financial outflows, cleaning up unused subscriptions, negotiating fees, understanding cancellation policies, and enforcing rights when faced with refusal.

The first step involves reviewing annual bank statements and authorization reports, which are mandated by banking regulations to be available to customers. These reports detail all charges, including those for banking services, credit cards, securities, and other fees, allowing individuals to see their cumulative annual spending. Additionally, customers can obtain a report of all authorized debits at any time, revealing recurring payments that may have been forgotten. Cross-referencing these with credit card statements provides a clear picture of spending patterns.

Next, consumers should actively cancel unused services. Banking regulations allow for the cancellation of direct debit authorizations with one business day's notice, and any authorization unused for 24 months is automatically void. For credit card recurring charges, the Payment Services Law applies, enabling cancellation within three business days of a charge. The Consumer Protection Law also provides avenues for cancellation, requiring businesses with online services to offer a clear, prominent cancellation link on their website.

The third step focuses on reducing costs through fee negotiation and identifying duplicate insurance policies. Banks are required to offer different fee structures, and customers can switch to plans that better suit their transaction volume. It's important to be aware of potential fees associated with canceling direct debits or standing orders, especially if fewer than six payments have been made. For insurance, the "Har Bituah" (Insurance Registry) platform can help identify duplicate policies.

Before making purchases, consumers should understand cancellation rights. The Consumer Protection Law grants a 14-day window to cancel most purchases after receiving goods, with limited cancellation fees. However, certain items like assembled furniture, food, and opened media are excluded. The price displayed on the item is the legally binding price, even if a higher price is charged at the register.

Finally, if a business or financial institution refuses a claim, the process of enforcement begins. Initial complaints should be made in writing. For ongoing transactions, businesses must investigate claims within ten business days and respond with a reasoned explanation. For banks and credit card companies, complaints can be escalated to the Supervisor of Public Complaints, with a maximum response time of 45 days. The Consumer Protection and Fair Trade Authority can impose significant financial penalties on businesses for violations. Consumers can also pursue claims in small claims court, up to a certain monetary limit, for a nominal fee.