Sources inform "Globes" that Supervisor of Banks Yoav Lehman is objecting to a basket of fees that Israel Discount Bank (TASE: DSCT) has already been offering for a year. Lehman intends to notify the bank of his objection soon. He lacks legal authority to order the bank to withdraw the basket, which the bank calls “Discount Fix.”
Lehman objects to Discount Fix for the same reasons that he objects to Bank Hapoalim’s (LSE: BKHD; TASE: POLI) package deal plan of a basket of fees for households. The deal, initiated by the Knesset Economics Committee, eventually fell through.
Lehman has already notified Bank Hapoalim of his objection. In response, Bank Hapoalim contacted the supervisor of prices, who has authority to authorize the bank to put baskets of fees into effect.
Lehman told "Globes" that the problem with Discount Fix and Bank Hapoalim’s basket of fees is that they are baskets of obligatory fees, according to which customers of the bank operate, and will operate in the future. He said that these baskets were not voluntary; were they voluntary, he would not oppose them.
”They are preparing to force everyone into something that has never existed before. I find it unacceptable for a bank to charge a fixed management fee, even if it offers something very fair in exchange,” Leman added.
According to Lehman, another problem is that the banks can later change the composition of the basket, thereby making it less worthwhile, while the Bank of Israel’s ability to supervise the basked is limited.
Discount Fix is a package of fees that includes an exemption from transaction and credit allocation fees, nine self-service printed statements, an exemption from fees for transfers to third parties at the bank and for personal tele-bank service, and two free checkbooks a year.
Discount Fix costs NIS 14 a month for private customers making up to six transactions a month, and NIS 25 a month for private customers with more transactions.
Lehman also objected to a package deal initiated by former Knesset Economics chairman Shalom Simhon, saying that it created problems of full disclosure to customers. Objections to the deal by both Lehman and Discount Bank prevented acceptance of the deal, but Bank Hapoalim chose to implement it unilaterally.
Bank Hapoalim wants to launch two baskets of fees in May. One basket, which includes basic transactions, costs NIS 18 a month, and the other, which costs NIS 10 a month, is for customers with very little banking activity.
Published by Globes [online], Israel business news - www.globes.co.il - on March 24, 2005