27% of the public’s complaints against the banks in 2005 were found to be all or partly justified, according to figures published by the Bank of Israel Supervisor of Banks. The lowest proportion of justified complaints was 16.1% at Bank Leumi (TASE: LUMI), and the highest was 30.3% at Bank Hapoalim (LSE: BKHD; TASE: POLI). The proportion of justified complaints was 25.4% at First International Bank of Israel (TASE: FTIN1;FTIN5), 27.9% at Mizrahi Tefahot Bank (TASE: MZTF), and 29% at Israel Discount Bank (TASE: DSCT).
The Complaints on Banking Services and Information on Banks section in the Bank of Israel banking supervision department processed 5,501 queries in 2005, including 4,000 complaints. The other queries were requests for information and other requests. As a result of the banking supervision department’s handling of specific complaints in 11 areas, the banks paid their customers a total NIS 2 million in 2005. The banks also had to refund over NIS 24 million to the relevant customers.
In the past four years, total refunds to bank customers resulting from public complaints to the Bank of Israel amounted to NIS 127 million. The main subjects in banking affecting the public last year were mortgages -- 21%, bank account management -- 16%, checks -- 10%, and charges -- 10%.
The lowest proportion of justified complaints among the credit card companies was 6.9% at Leumi Card, followed by Israel Credit Cards-Cal (ICC-Cal) with 14.3% and Isracard with 17.6%.
The rate of justified complaints rose from 28.7% in 2004 to 30.3% in 2005 at Bank Hapoalim, and from 27.7% in 2004 to 29% in 2005 at Discount Bank. The rate fell from 30.4% in 2004 to 27.9% 2005 at Mizrahi Bank, from 29.8% in 2004 to 25.4% in 2005 at First International Bank, and from 19.5% in 2004 to 16.1% in 2005 at Bank Leumi.
Published by Globes [online] - www.globes.co.il - on January 25, 2006