Discount Bank to Repay $8.8 Million in Card Fees After Court Settlement
Translated & summarized from Calcalist by baba
Discount Bank will refund approximately NIS 8.8 million to customers following a class-action lawsuit settlement approved by the Central District Court. The bank was accused of improperly charging monthly card fees, violating agreements and published terms. Eligible customers will receive 70% of the fees charged, with active customers getting direct deposits and former customers receiving checks. The bank has also updated its agreements and customer communications.
The story in 5 lines · by baba
- Discount Bank will repay NIS 8.8 million to customers due to improper card fee charges.
- The Central District Court approved a class-action settlement resolving the fee dispute.
- Customers will receive 70% of the improperly charged monthly card fees.
- Active customers will get refunds within 150 days, former customers within 30 days.
- The bank has also revised its credit card agreements and customer notices.
Israel's Central District Court has approved a NIS 8.8 million settlement in a class-action lawsuit against Discount Bank. The suit alleged the bank improperly charged monthly card fees to customers, contrary to their agreements or published terms offering exemptions under certain conditions. The claim was filed in June 2025 by lawyer Omer Haritan, represented by Ohad Rosen.
Discount Bank denied the allegations, asserting its actions were lawful and in good faith, and that customers received applicable benefits. Negotiations between the parties led to a settlement proposal submitted in August 2026, which was approved without any objections. The settlement covers customers who were charged fees in violation of their credit card agreements or despite meeting exemption criteria during the settlement period, defined from April 4, 2024, to the approval date.
Under the approved terms, eligible customers will receive 70% of the card fees they were charged, plus indexation and revaluation adjustments. Active customers will receive the refund directly to their current accounts within 150 days of approval. Former customers owed over NIS 50 will receive a check by mail within 30 days after active customers are credited. Smaller amounts or uncashed checks will be transferred to a state-managed fund for class-action proceeds.
Additionally, Discount Bank has revised its credit card agreement wording to clarify fee collection, sent personal clarification notices to existing contract holders, and updated its publications for new customers. Judge Halit Silash appointed Ariel Green of Somch Haikin KPMG as supervisor for the settlement's execution and the bank's calculations, with the bank covering his fees.