Compromise Approved: Banks to Pay 9.2 Million Shekels to Mortgage Borrowers
The compromise agreement was reached as part of a motion for a class action lawsuit, in which it was alleged that Mizrahi Tefahot, Hapoalim, and Leumi banks acted contrary to the provisions of the Banking…
Assessment
A court approved a 9.2 million shekel settlement in a class action claim against Mizrahi Tefahot, Hapoalim, and Leumi banks. The case alleged these banks violated banking regulations by refusing to offset negative discount rate differences calculated during early mortgage repayments. The settlement's approval signals a resolution without a full trial, but the core legal question about the banks' compliance with those specific regulatory instructions remains untested in court.