Business Owner Sues Lod Municipality for Wrongful Bank Account Seizure Over Old Debt

A business owner from Ramat Gan has filed a 100,000 shekel lawsuit against the Lod Municipality, claiming wrongful seizure of her bank account due to an old property debt in Lod. She alleges she has not lived in Lod for over 15 years and had no connection to the property in question. The lawsuit, submitted to the Magistrate's Court in Kfar Saba, accuses the municipality of damaging her reputation, credit rating, and business standing by imposing a lien without prior warning related to municipal tax and water debts from 2008-2009.

According to the plaintiff, she only discovered the lien after it was placed, which portrayed her as financially unreliable to her bank. She further claims that the municipality admitted to a technical accounting error after she filed a complaint with the State Comptroller’s Public Complaints Commission and canceled the debt demand. However, she argues that the cancellation does not undo the harm caused to her reputation and financial condition.

The Lod Municipality denies ever placing a lien on her bank account, stating that only a payment demand was sent for an old, time-barred debt, which was later canceled. The municipality also rejects the defamation claims, noting that the Public Complaints Commission found no grounds to continue investigating after the debt notice was withdrawn.

The plaintiff seeks 50,000 shekels for defamation without proof of damage and an additional 50,000 shekels for emotional distress, privacy violations, and other damages. The case is pending in court, with the municipality firmly denying the allegations of wrongful lien.

Summary: A Ramat Gan business owner sues Lod Municipality for 100,000 shekels, alleging wrongful bank account seizure over a 15-year-old debt linked to a Lod property, which the municipality denies, stating no lien was ever placed and the debt was canceled after a complaint.