Discount Bank to Refund $2.4 Million in Fees to Customers

Discount Bank has agreed to a settlement of approximately 8.8 million shekels (about $2.4 million) to be repaid to customers who were allegedly charged monthly debit card fees despite being entitled to an exemption. The Central District Court approved the class-action settlement, which resolves claims that the bank collected fees from private and small business customers who, according to their agreements or bank publications, should have been exempt under certain conditions.

The bank denied the allegations, asserting it acted lawfully and in good faith, and that customers received all applicable benefits. Negotiations between the parties began before the bank filed its response to the initial claim, and a joint settlement request was submitted in August 2026, with neither side admitting fault.

The settlement covers customers charged card fees in violation of their agreements or who met exemption criteria but were still charged. The eligibility period is from April 4, 2024, to the settlement approval date. Eligible customers will receive 70% of the fees charged, plus indexation and revaluation.

Active customers will receive the refund directly to their current accounts within 150 days of the settlement's approval. Former customers owed over 50 shekels will receive a check to their last known address within 30 days after active customers are credited. Refunds under 50 shekels, unpayable amounts, and uncashed checks will be transferred to a fund for distribution under the Class Actions Law.

As part of the settlement, Discount Bank has revised its debit card agreement, sent clarification notices to customers who signed the previous version, and updated its publications for new clients. Judge Hilit Silsh appointed accountant Ariel Green as supervisor for the settlement's execution, with his fees to be paid by the bank.

This is not the only class-action lawsuit facing Discount Bank. The article also mentions a separate, ongoing claim against four Israeli banks, including Discount, alleging the integration of hidden tracking mechanisms in customer emails without explicit consent. This claim, which seeks over 2.5 million shekels in damages and an end to the tracking practices, is still pending court decision.