Banks in Israel are obliged by law to provide their customers with complete, reliable information in writing and must actively prevent the risk of misleading the customer in relation to the terms agreed upon with them.
What does this mean and what is your role in it?
So what does the bank have to tell you?
Many people are frightened by banking concepts and tend to see the bank as an unquestionable authority in relation to financial decisions that need to be made.
It is important to remember that although it is definitely recommended to consult with the bank, which knows you and your financial affairs well, but in the end the bank is a service provider and you are the customer.
Accordingly, the bank is obliged to update you regularly on many issues related to your money.
Information on fees
The bank charges a fee for each banking service provided to you, and it must update you once every six months about the fee track you are on, and about the amount of fees actually collected from you during this period.
The regulator even defined the minimum size of the font that the bank can use in these messages, to make sure that you can clearly see the data.
Are you paying too high fees in your opinion? It is permissible and desirable to try to reach a different and more profitable arrangement with the bank, including checking the conditions you will receive at other banks.
Interest rates for long and short term loans
The bank must inform you of the amount of interest you will pay for each loan you have taken, including expected payments for the entire life of the loan.
In this regard, our recommendation is not to be content with understanding the chosen loan route, but to calculate what the actual monthly repayment will be, so that you can understand the consequences for your regular financial conduct.
A change in the plan or benefits track
Many customers, especially young people, join the bank thanks to various benefits guaranteed to them when they join. Few ensure that these benefits are maintained for the pre-defined period of time, and even fewer negotiate with the bank to extend the benefits.
It is important that you know that the bank is obliged to inform you in writing, 3-4 months before the end date of the route or the benefit and allow you to take advantage of it if you have not done so before.
And what should you do?
After understanding what the bank’s obligations are – it is important to understand that in the end a lot depends on the client, on his level of vigilance in meeting the agreed conditions and unwillingness to give up the important information that he deserves and helps him manage his business wisely.
