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

The Jerusalem Municipality will pay a couple 4,000 shekels after mistakenly seizing funds from their joint bank account due to two unpaid traffic fines of 650 shekels each for driving in a public transport lane. The fines and payment notices never reached the couple, partly because their apartment was damaged by a missile in October 2023 and partly due to a postal sorting error that caused the registered mail to be returned to the sender.

The case began with the issuance of two traffic fines in 2024, sent by registered mail to the couple's registered address in Tel Aviv. The mail was returned with a note that the recipients were unknown or no longer lived at the address. Consequently, in June 2025, the municipality imposed a bank account seizure. After the couple appealed, the seizure was lifted in July 2025.

During the court hearing, it was revealed that despite the missile damage rendering the apartment uninhabitable, the couple continued to receive some mail at that address. An investigation with Israel Post confirmed the fine notice was returned due to a sorting error, even though the recipients were known at the address. The couple, represented by attorney Asaf Deri and law student Elad Meiri, argued the seizure was unlawful since the fines were never properly delivered and that the seizure constituted defamation.

The municipality claimed the couple failed to update their address in the population registry, but the court rejected this, noting that address updates are only required when the mailing address changes. Since the couple continued to receive mail at the damaged apartment, they bore no fault. The court criticized the municipality’s handling, emphasizing that collection procedures must be proportionate and sensitive, especially when there is knowledge of non-delivery.

The judge ruled that the bank account seizure amounted to defamation by publicly portraying the account holders as debt evaders, entitling the couple to compensation without proof of damage. However, due to the relatively small amount and the short duration 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 an unfortunate anomaly caused by a postal error and missile damage, and that the seizure was part of routine collection procedures which were promptly reversed upon learning the circumstances.