Banking Law (Customer Service) (Amendment – Cancellation of a Transaction under a Direct Debit Authorization due to Insufficient Account Balance and Limitation of Fees for Direct Debit Authorization) Bill

What does the bill do?

The bill adds a duty for a banking corporation to notify a customer without delay when a payee seeks to make a charge while there is an insufficient balance in the account, including an explanation of the need to deposit funds. If the notice was not given, the corporation will not cancel the transaction until one business day after notice of the shortfall. The bill also limits fees for carrying out or canceling transactions under a direct debit authorization due to an insufficient balance - a limit of 10 shekels or 5% of the amount of the transaction, whichever is lower.