BoI fines Hapoalim for charging hidden fees

Bank is fined NIS 600,000 for charging for closing accounts, transferring activity that can't be found in its fee schedule.

Bank Hapoalim 311 (photo credit: Ariel Jerozolimski )
Bank Hapoalim 311
(photo credit: Ariel Jerozolimski )
The Bank of Israel on Tuesday imposed a financial sanction of NIS 600,000 on Bank Hapoalim for charging fees for closing accounts and transferring activity that cannot be found in its full fee schedule.
The Banks Supervision Department imposed the sanctions after it found that Hapoalim customers were charged these fees over the past seven years. According to the findings, the total amount of the refunds for these accounts is about NIS 5 million. The central bank said it was working to identify the customers who are entitled to a refund.
In response, a Bank Hapoalim spokeswoman said the bank had done everything the central bank required of it, including returning funds to customers.
The Bank of Israel said Hapoalim had taken steps to prevent a recurrence of the deficiencies.
Meanwhile, the central bank said it also imposed a civil fine of NIS 112,950 on Israel Discount Bank in December 2011 for the holding of a 25 percent share in the means of control in a nonfinancial corporation, as defined by law. According to the Bank of Israel, this is higher than the maximum 20% share for such a holding, as set in the Banking (Licensing) Law 1981.