The Bank of Israel today published its report, "Handling of Complaints from the Public against the Banking System in 2009". In 2009, the Banking Supervision Department handled 8,600 enquiries and complaints from the bank and credit card companies' customers, not including telephone enquiries. Refunds to customers for violations revealed by complaints totaled NIS 10.5 million
26.6% of the complaints last year were found to be justified. The proportion of justified complaints out of total complaints, for which a position was taken, was highest for First International Bank of Israel (TASE: FTIN1;FTIN5) and Mizrahi Tefahot Bank (TASE:MZTF), at about 33% each. The proportion was lowest for Bank Leumi (TASE: LUMI), at 17%. The Bank of Israel noted that Bank Leumi had the smallest proportion of justified complaints, even though it has the largest market share, at 34%, whereas Mizrahi Tefahot Bank's market share is 9%.
The Bank of Israel said that there has been a steady rise in the number of complaints by bank customers to the Unit for Public Enquires, with the figure doubling since 2000. The reasons for this include the introduction of the possibility for submitting a complaint by e-mail, which made the process more accessible, extraordinary events, such as the collapse of housing contractor Heftsiba Ltd., and the reform of fees and provision of information to the public.
Among banks other than the top five, Discount Bank subsidiary Mercantile Discount Bank had the largest proportion of justified complaints, at 46.3%. Union Bank of Israel (TASE: UNON) had the lowest proportion of justified complaints, at 16.7%.
The proportion of justified complaints out of total complaints against credit card companies was highest for Isracard Ltd., at 23.1%, and lowest for Leumi Card Ltd. at 9.1%. 15.8% of complaints against Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa) were justified.
The proportion of justified complaints out of total complaints against mortgage banks was highest for First International Bank (48.1%), and Mizrahi-Tefahot Bank (40.9%). Leumi Mortgage Bank had the lowest proportion of justified complaints at 17.4%.
The number of complaints about bank fees has fallen sharply, to 4.7% of all complaints in 2009 from an average of 9.8% a year in 2005-08. The Banking Supervision Department attributes this decline to the comprehensive reorganization that was implemented as part of the bank fees reform. In the past, fees were the most common reason for complaints, peaking in 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010