Region

Jurisdiction

Regulator

2012-03-22

Charging Customers for Legal Fees

The Supervisor of Banks issued regulations prohibiting banking corporations from charging customers for legal fees or court costs during ongoing legal proceedings. Banks must wait until the conclusion of the process to demand such fees, which must be determined by a court or other judicial authority. An exception allows banks to charge the minimum fee under the Chamber of Advocates Law during the execution process if specific fees have not yet been determined.

Israel

Bank of Israel

Supervisor of Banks: Proper Conduct of Banking Business (12/95) Charging Customers for Legal Fees Page 409- 1 ONLY THE HEBREW VERSION IS BINDING CHARGING CUSTOMERS FOR LEGAL FEES Introduction

Some banking corporations charge customers whom they are suing, for legal fees and other court costs, in connection with the court case and in the course of the process. Time and amount of charge
A banking corporation shall not charge customers or demand legal fees or other court costs from them in connection with a legal process until the conclusion of that process, and the amount shall be as determined by the court or other judicial authority as legal fees and court costs. Execution
Despite the aforesaid, in the course of the execution process, if specific legal fees have not been determined, the banking corporation is entitled to charge the customer for the minimum fee set under section 81 of the Chamber of Advocates Law, 5721–1961.

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