Bank of Israel's Supervisor of Banks has fined Bank Hapoalim (TASE: POLI) NIS 385,000. The Supervisor of Banks had previously required the bank to take responsibility for the damage caused by check books getting lost in the post and not rolling costs onto the customer. However, the bank failed to correct the practice within three months and it was therefore decided to impose the large fine.
The episode began when the Supervisor of Banks received a complaint that Hapoalim's form for signing up to the delivery of checkbooks by post, included a clause placing responsibility for any damage that might be caused by using the service on the customer. The customer was asked to confirm accepting responsibility for any consequence, damage or payments that might be caused as a result of the checkbook not reaching its destination and that the bank was not liable for such an eventuality. Last August, the Supervisor of Banks contacted Bank Hapoalim and asked to immediately correct the documents placing responsibility on the customer and to clarify that the bank bore full responsibility for any damage caused if the checkbook fell into the hands of a third party.
Three and a half months later, the Supervisor of Banks again checked with Bank Hapoalim and saw that the bank had not amended the forms as asked and subsequently decided to impose the fine.
Supervisor of Banks Dr. Hedva Ber said, "The Supervisor of Banks attaches major importance to fair relations between the bank and its customers. Placing full responsibility on the customer when sending the checkbooks by post, even in circumstances that are not under the full control of the bank, while the bank completely abdicates its responsibility, is not acceptable to us."
Bank Hapoalim said, "Bank Hapoalim accepts the position of the Supervisor of Banks, has corrected the relevant clause in the agreement and will fully apply the instructions of the Supervisor of Banks. It is appropriate to mention that delivering checkbooks directly to the homes of customers is designed to make things easier for them and to provide them with an improved service experience. We stress that in the test of reality, since the service was introduced, the bank has dealt with cases where the checkbooks did not reach their address so that in practice no damage was caused to the customer."
Published by Globes, Israel business news - en.globes.co.il - on April 4, 2019
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