2.38 million NIS for MAX customers: Are you eligible for compensation?

MAX customers may be eligible for compensation following a court-approved settlement regarding the collection of card fees after the end of a waiver period without specific prior notification.

The Central District Court in Lod, presided over by Judge Yael Mushkowitz, approved an amended settlement agreement on July 22 in a class action lawsuit filed against MAX It Finance Ltd. and MAX It Credits Ltd. Under the agreement, the company has committed to providing 2,384,450 NIS to compensate eligible customers, with any remaining balance to be transferred to the Fund for Class Actions.

The lawsuit, filed in 2023 by a Dream Card VIP holder, alleged that after the fee waiver period expired, the company began charging a monthly commission without sending a dedicated, separate notification via SMS or other means.

The plaintiff argued that the company only disclosed the charges within monthly statements. In an era where many customers manage their finances via mobile apps and do not regularly review detailed statements, the notice regarding the end of the benefit often went unnoticed. The lawsuit claimed this constituted a failure to meet transparency and disclosure obligations toward consumers.

Conversely, MAX It maintained that it acted in accordance with customer agreements and that cardholders bear the responsibility for monitoring their own charges. The company argued that customers were informed via their statements and that there was no legal requirement at the time to send separate notifications.

Under the approved settlement, direct compensation will be provided to customers who meet specific criteria: they previously received a fee waiver, were charged fees after the waiver ended without separate notice, contacted the company within six months of the charges to request cancellation or a retention offer, and currently hold an active MAX It credit card.

The compensation is set at 15 NIS for each month fees were paid, up until the date of cancellation or the reinstatement of a waiver. It is estimated that about half of the eligible customers will receive direct compensation. Funds not distributed directly—such as those belonging to former customers who are no longer active—will be transferred to the Fund for Class Actions to support consumer awareness and financial education initiatives.

The court rejected a demand to require MAX It to actively locate all former, inactive customers, noting that the costs of such an effort would significantly diminish the funds available for the public. It was also determined that customers who receive personal compensation are considered fully settled on this matter. However, active customers who do not receive compensation under this agreement retain the right to file individual lawsuits for damages.

The settlement includes a reward of 50,930 NIS plus VAT for the lead plaintiff and legal fees of 458,370 NIS plus VAT for her attorneys. MAX It is required to publish a public notice regarding the settlement approval on its website and in two widely circulated daily newspapers.