Jerusalem Municipality Ordered to Compensate Couple After Bank Account Seizure Over Unreceived Traffic Fines

The Jerusalem Municipality will compensate a couple 4,000 shekels after mistakenly seizing funds from their joint bank account due to two unpaid traffic fines of 650 shekels each. The fines were issued in 2024 for driving in a public transportation lane, but the couple never received the payment notices. This was partly because their apartment was damaged by a missile in October 2023 and also due to a postal sorting error that caused the fine notices to be returned to the sender.

In June 2025, the municipality imposed a bank account seizure order after the payment notices sent by registered mail to the couple's registered address in Tel Aviv were returned undelivered. The seizure was lifted in July 2025 following the couple's appeal. During court proceedings, it was revealed that despite the missile damage rendering their home uninhabitable, the couple continued to receive some mail at their original address. Israel Post confirmed the fine notice was returned due to a sorting mistake, even though the recipients were known at that address.

The couple, represented by attorney Asaf Deri and law student Elad Meiri, argued the seizure was unlawful since they never received the fines and that a simple inquiry would have prevented the seizure. They also claimed the seizure constituted defamation. The municipality contended the couple failed to update their address in the population registry, but the court rejected this, ruling that address updates are only required if the mailing address changes. Since the couple continued to receive mail at the damaged address, they bore no fault.

Registrar Avigail Van-Kerfeld ruled that the bank account seizure amounted to defamation because it publicly portrayed the couple as evading debts, awarding compensation without requiring proof of damage. The court criticized the municipality's rigid collection procedures, emphasizing the need for sensitivity and proportionality, especially when residents' homes were damaged and evacuated. Given the relatively small amount and the quick cancellation of the seizure, the court awarded a moderate compensation of 4,000 shekels out of the 20,000 shekels claimed, payable within 30 days plus interest.

Attorney Asaf Deri commented that the ruling highlights the problematic automatic enforcement practices of municipalities that often cause undue hardship to residents affected by conflicts. The Jerusalem Municipality stated the case was exceptional, noting the seizure was part of routine collection procedures after sending notices to the couple's official registered address, and that the seizure was promptly canceled once the circumstances were clarified.