The Central Lod District Court approved yesterday (Tuesday) a class action lawsuit against four of the largest banks in the economy, claiming that they avoided paying interest to customers on their current account funds for years - while using the funds to make a profit.
According to an economic opinion attached to the lawsuit's request, the damage to customers is estimated at NIS 3.62-5.06 billion - but may ultimately reach a much higher amount, estimated at more than NIS 15 billion, in light of the extension of the period covered by the lawsuit.
The request to certify the lawsuit as a class action was filed in June 2023, and it was filed against Leumi, Mizrahi Tefahot, Discount and First International.
Bank Hapoalim is not included in the proceedings, as a separate class action lawsuit is pending against it on the matter that has not yet been approved.
Judge Shmuel Bornstein ruled that there is a reasonable possibility that the lawsuit, based on a claim of unjust enrichment, will be accepted.
The period covered by the lawsuit is from April 2022, when interest rates began to rise in the economy, until May 2025, when an amendment to the Banking Law came into effect that required banks to inform customers with large credit balances of investment options.
According to data presented in the proceedings, approximately 400 billion shekels of public funds are held in current accounts. Of this, according to the Bank of Israel, as of April 2024, approximately 386 billion shekels belonged to customers who did not receive interest on them - and as of March last year, 211 billion shekels belonged specifically to households who did not receive interest on them.
It should be emphasized that at this stage, this is only an approval of the management of the lawsuit and is not yet an actual compensation ruling.
The next hearing in the case is set for February 2027.
