Claimants: The bank transfers customers to more expensive management fees packages on current accounts without the customers' consent.
A request has been filed with the Tel Aviv District Court to approve a NIS 18 million class action suit against Israel Discount Bank (TASE: DSCT). The lawsuit claims that the bank transferred customers to more expensive management fees packages on current accounts after the expiry of the benefits period without the customers' consent.
The claimants, Ron Ozeri and Liat Miali claim that they were initially charged a low management fees package on current accounts (such as the basic NIS 10 per month fee package, or special no-fee package). After a year, the bank switched them to a more expensive fee package, "Discount Fix Package", at a cost of NIS 30 per month.
The claimants say that if a customer discovers the switch and complains, the bank reverts to the cheaper fees package, but only rarely reimburses the customer for the difference. The claimants say that most customers do not complain and continue to pay the high fees.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2008
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