Israeli Credit Data Law: Who Can Access Your Financial Report

Israeli law strictly regulates access to personal credit reports, primarily limiting them to lenders for credit transactions. Section 110 of the Credit Data Law explicitly prohibits employers from requesting credit data or ratings for hiring purposes, with potential penalties including damages awarded without proof of loss. Authorized credit bureaus are permitted to provide data to lenders solely for credit-related dealings, excluding entities like landlords, insurance companies, or employers.

The law remains unclear on whether landlords can demand tenants provide their own free credit reports. Individuals wishing to block data sharing with specific entities or opt out of the entire database operate under separate procedures. Lenders can opt for a simplified "indication" (positive or negative) of a borrower's repayment status, as allowed by Section 33, which can be obtained even without explicit consent, provided the customer is notified in advance. Access to a full credit report and rating requires explicit customer consent via a dedicated form, as per Section 26(a)(4).

Consent forms must detail the transaction, parties involved, expiration date, and clarify that consent allows for ongoing monitoring and credit scoring. The forms also must inform the customer about the database's inclusion of insolvency proceedings, collection cases, and account restrictions, and state the consequences of refusal. Consent validity extends until the credit transaction concludes or a chosen earlier date, with default periods of 120 days for mortgages and 60 days for other transactions if the deal is canceled.

Guarantors sign the same consent form, and their guarantees are treated as credit transactions reported to the database. The credit data system and open banking are distinct but share the common goal of breaking bank data exclusivity. In the credit data system, information sources report to the Bank of Israel under legal obligation, while open banking, under the 2022 Financial Services Law, allows customers to transfer raw financial data to authorized service providers.

Lenders receiving a report must immediately notify the customer and provide the credit bureau's details. Section 25 restricts data use to the purpose for which it was requested, and Section 58(a) prohibits further disclosure. A 2026 amendment expanded the system to include corporations, projected to save businesses approximately 1.5 billion shekels annually in credit costs.