Regulatory Alerts2016-02-16
Banking (Service to Customer) Law, 5741-1981
The Israeli Knesset enacted this law to regulate the conduct of banking corporations in their interactions with customers, establishing mandatory duties regarding service provision and transparency. The legislation prohibits unreasonable refusal to provide core services, bans misleading acts and exploitation of vulnerable customers, and mandates clear disclosure of fees and material service details. It further introduces specific protections including requirements for pre-action notices on loan defaults, mechanisms for switching banking providers, and restrictions on tying services or charging early repayment fees on housing loans.
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