Israel Discount Bank to Refund 8.8 Million Shekels in Class Settlement
Israel Discount Bank will refund 8.8 million shekels following a Central District Court approval of a class action settlement regarding unauthorized debit card fees.
The Central District Court has approved a settlement agreement in a class action lawsuit against Israel Discount Bank, addressing allegations of unauthorized debit card fee collections. Under the terms of the settlement, the bank will refund an estimated 8.8 million shekels to affected customers.
The class action was filed in June 2025, claiming that the bank charged monthly debit card fees to private and small business customers despite explicit agreement exemptions or promotional promises. Israel Discount Bank denied the allegations, maintaining that its actions were lawful and conducted in good faith, while noting that relevant benefits had been provided to clients.
Following negotiations, the parties submitted a compromise agreement in August 2026 without admitting liability. The settlement covers customers charged improperly between April 4, 2024, and the approval date. Active clients will receive a 70% refund of the collected fees directly into their current accounts within 150 days of approval.
Former customers owed more than 50 shekels will receive a check by mail within 30 days following the active client payouts. Smaller refunds, unverified addresses, or uncashed checks will be transferred to the official Class Actions Fund. Additionally, the bank has updated its agreements, issued clarifying notices, and appointed independent inspector Ariel Green from Somekh Chaikin KPMG to oversee the execution.
