NIS 1.5b. suit claims Hapoalim discriminated against W. Bank residents

Dvir Indig, a resident of Oranit, filed the class action lawsuit against Bank Hapoalim for disqualifying 500,000 Israeli residents of the West Bank from receiving a mortgage from Bank Hapoalim.

A Bank Hapoalim branch in Tel Aviv (photo credit: REUTERS)
A Bank Hapoalim branch in Tel Aviv
(photo credit: REUTERS)
A NIS 1.15 billion class action lawsuit against Bank Hapoalim for discriminating against people living over the Green Line regarding mortgages, has been filed in the Tel Aviv District Court.
Dvir Indig, a resident of Oranit, filed the class action lawsuit against Bank Hapoalim for disqualifying 500,000 Israeli residents of the West Bank from receiving a mortgage from Bank Hapoalim. Oranit is a town abutting the Green Line.
Indig pointed out that in his request to a mortgage representative of Bank Hapoalim he explained that other banks, including Bank Leumi, agreed to offer a mortgage on properties in the West Bank, but the Hapoalim representative insisted on ending the call on the grounds that the service could not be provided to the client.
Indig wanted to examine the possibility of “mortgage recycling” and called the bank to receive a bid for a mortgage of NIS 1 million.
Once Indig mentioned that the property was located in Oranit, the call center representative immediately stated: “Then it is not possible.”
Bank Hapoalim’s behavior – as described in the suit – is a serious violation of the Prohibition of Discrimination Law on Products, Services, and Entrance to Public Places, 2000.
The law explicitly states “Those who engage in the provision of a public product or service or the operation of a public place will not discriminate against in the provision of a public service or product... because of place of residence.”
Bank Hapoalim responded the claim has not yet been received by the bank, and that the bank does not discriminate regarding the provision of mortgages and credit according to geographical areas.
As a rule, the bank also provides housing loans in the West Bank when the client has a right to an apartment in accordance with the bank’s procedures.
It also stated that when the client has a right registered with the Land Registry Bureau, or a right under an agreement with the Lands Administration, the Civil Administration or the Zionist Organization, a mortgage can be obtained anywhere.