Enforcement proceedings (Hotzaa LaPoal) by Bank Mizrahi Tefahot: a debtor’s guide and the case law

In short: when Bank Mizrahi Tefahot or one of its subsidiaries opens a file against you at the Israeli Enforcement and Collection Authority (Hotzaa LaPoal), you receive a warning. In a bill-enforcement file or a fixed-sum claim you have 30 days from service of the warning to file an objection. An objection filed on time automatically stays collection and the matter moves to court. Courts have already approved settlements against Mizrahi Tefahot over inflated debt balances in enforcement files, legal costs charged without court approval, and fees for duplicate lawyers’ warning letters.

Which file was opened against you

The warning and the personal area on the Authority’s website show the file type. It determines your options:

In a fixed-sum claim the creditor must first send you notice of its intention to open a file, by registered mail with delivery confirmation, and may file only after 30 days from service of that notice. Check whether and when you received it.

What to do when a warning arrives

1. Check the file in the personal area: when it was opened, on which document, the amount and its components (principal, interest, legal fees, costs).
2. Note the date of service. The 30 days run from it. If you file any request in the file, you are deemed to have received the warning on that day unless the registrar orders otherwise.
3. Object if you have a defence. In bill and fixed-sum files you file an objection (form 218) with a sworn affidavit, a copy of your ID, the documents you rely on and a copy of the file-opening documents. Filing on time stays collection automatically and moves the case to court.
4. If the deadline has passed, you can still object, together with a request to extend time (with an affidavit explaining the delay) and a request to stay proceedings. Meanwhile the bank may continue collection, including attachments.
5. If the debt is not disputed, you can ask for a payment order. According to Kol Zchut, instalments run up to 3 years for debts up to NIS 100,000 and up to 4 years for larger debts, extendable by the registrar by up to 3 more years.
6. In other file types, such as enforcement of a judgment, a debtor who does not pay in full must attend a capacity examination within 21 days, or may be treated as evading payment.

Checking the debt

• Full account statement. Ask the bank for the full statement from the day the debt arose and compare it with the balance in the file.
• Interest. Check which interest was charged, from when, and whether it matches the agreement or judgment. In one case in the archive, the registrar rejected Mizrahi Tefahot’s request to add NIS 2.6 million in interest 28 years later.
• Legal fees and costs. Check for legal costs not approved by a court and for duplicate charges for lawyers’ warning letters. Class-action settlements against the bank were approved on both issues.
• Account transfer. If the account was opened at Bank Igud and moved to Mizrahi, check that standing orders and payments were transferred. See Bank Igud.

What the courts have already ruled against Mizrahi Tefahot in this area

What this page is not

This guide summarises general information from official sources and the rulings archive. It is not legal advice. Deadlines and rules change, and every file requires checking its own documents. When in doubt, consult a lawyer or legal aid.

Sources

1. כל זכות: אזהרה לחייב בהוצאה לפועל
2. כל זכות: התנגדות לביצוע שטר בהוצאה לפועל
3. כל זכות: תביעה על סכום קצוב בהוצאה לפועל
4. כל זכות: מדריך לחייב שנפתח נגדו תיק תביעה על סכום קצוב