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

The Jerusalem Magistrate's Court has ruled that the Jerusalem Municipality must pay 4,000 shekels in compensation to a couple whose joint bank account was seized due to two unpaid traffic fines that were never received by them. The fines, each amounting to 650 shekels, were issued in 2024 for driving in a public transportation lane. Payment notices were returned to the municipality, leading to the account seizure in June 2025, which was lifted shortly after the couple appealed.

During the court proceedings, it emerged that in October 2023 a missile struck the ceiling of the couple's apartment, rendering the building uninhabitable until repairs were completed. Additionally, one of the payment letters was returned due to a sorting error by Israel Post, despite the couple continuing to receive other mail at the same address. Registrar Avigail Van-Kerfeld noted that seizing a bank account constitutes a "publication" that can damage reputation and may qualify as defamation, warranting compensation even without proof of harm.

The court rejected the municipality's claim that the couple was obligated to update their address in the population registry, emphasizing that since they continued to receive mail at the registered address, no such duty applied. The ruling also stressed that public authorities must exercise extra caution in debt collection procedures, especially after October 7, 2023, when many residents were displaced due to missile strikes.

Ultimately, the court awarded the couple 4,000 shekels out of their 20,000-shekel claim, considering the seizure was lifted promptly. The Jerusalem Municipality described the case as exceptional and regrettable, noting the lien was canceled within days after the circumstances were clarified.