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R-On Investments vs. The First International Bank

In the application is claimed that the bank overcharged the customers who took foreign currency loans on the basis of “LIBOR” interest.

Overcharge was made because the bank has rounded up the LIBOR rate to the nearest 1/8 percent without informing customers about it.

The plaintiff sought to compel the bank to reimburse its customers the amounts of overdue interest it charged them.

After the lawsuit was filed and the witnesses were heard and before a decision was made, the court asked the Supervisor of Banks to examine the allegations – the Supervisor accepted the allegations raised in the application.

Following the conclusions reached by the Supervisor of Banks, he instructed the bank to scan all the loans it has given in the last 7 years at LIBOR interest rates, to list all the amounts collected by it in excess as a result of the upward interest rounding, and to repay the differences to customers.

As a result, the Bank returned to those customers a total of approximately NIS 13.5 million.

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