Israel Moves to Increase Credit Card Fee Transparency
Translated & summarized from Maariv by baba
Israeli credit card companies collect over 1 billion shekels annually in fees. Bank of Israel is proposing new rules for credit card companies to proactively send customers semi-annual fee summaries. This follows a push from consumer group Lobby 99, who argued current summaries are easily missed. A draft directive was published on November 4th to implement the change.
The story in 5 lines · by baba
- Israeli credit card companies collect over 1 billion shekels annually in fees.
- Bank of Israel proposes mandatory semi-annual fee summaries for credit card users.
- Consumer group Lobby 99 advocated for more accessible fee reporting.
- Current fee information is often overlooked in monthly billing statements.
- A draft directive on digital mailings was published on November 4th.
Credit card companies in Israel collect over 1 billion shekels annually in fees from customers, primarily in the form of annual card fees. Bank of Israel is proposing new regulations to mandate that these companies proactively send customers a semi-annual summary of all fees paid. This initiative aims to make it easier for consumers to track their total spending on credit card fees.
Currently, fee summaries are included in monthly billing statements, but consumer advocacy group Lobby 99 argued in September that this information is easily overlooked, especially for users who primarily track transactions via mobile apps without opening detailed billing pages. Lobby 99 had previously petitioned the Supervisor of Banks to require companies to send these summaries proactively and accessibly, similar to how banks send monthly notifications about fees and interest.
Bank of Israel had already proposed a similar measure in August 2023, suggesting that credit card companies be required to send fee summaries through immediate and accessible channels. However, after more than three years without the regulation being finalized, Lobby 99 re-engaged the Supervisor of Banks in September to push for its advancement. In response, on November 4th, Bank of Israel published a draft directive on digital mailings that includes this proposed requirement.
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