MAX Credit to Pay 2.38 Million Shekels in Class Action Settlement Over Card Fees
MAX Credit has agreed to pay approximately 2.38 million shekels as part of a class action settlement approved by the Central District Court in Lod on July 22. The lawsuit, filed in 2023 by a customer holding a Dream Card VIP, alleged that MAX charged monthly card fees after a promotional exemption period ended without sending separate, direct notifications to customers. Instead, the company only included the information in monthly account statements, which plaintiffs argued was insufficient given many customers primarily use apps and may miss such details.
The court approved a revised settlement under which eligible customers will receive direct compensation credited to their accounts. To qualify, customers must have previously received a fee exemption, been charged fees after the exemption ended without separate notification, contacted MAX within six months of the fees starting to cancel their card or request a retention benefit, and currently hold an active MAX credit card. Compensation will be 15 shekels per month for each month fees were paid until cancellation or renewed exemption. It is estimated that about half of the eligible customers will receive direct payments.
Funds not distributed directly, such as those for inactive former customers, will be transferred to a fund supporting consumer rights, awareness, and financial education. The court rejected demands to require MAX to actively locate all former inactive customers, citing that the low compensation amounts and search costs would reduce the funds available to the public. Customers who receive direct compensation must comply with the settlement terms, but active customers who do not receive compensation retain the right to file individual lawsuits.
The lead plaintiff will receive 50,930 shekels plus VAT, and her attorneys will be paid 458,370 shekels plus VAT. MAX is required to publish notices about the settlement on its website and in two widely circulated daily newspapers.
