A bank branch in Hod Hasharon took unilateral actions of withdrawing funds and restricting a customer account without any prior inquiry and without an overdraft in her account, merely based on a televised interview that was conducted with her.
The Court accepted the claim and held that the bank’s actions constituted a breach of banking obligations to its client. A bank is obligated to act in good faith towards its clients. Thus, the bank must notify the account holder before taking any unilateral action to pay off charges, credit, loans and the account, except in extreme situations. Here, the bank withdrew money from the client’s account for immediate repayment of a loan. In addition, the bank canceled loans and checks. The bank's actions were done unilaterally and without prior notice, and all following a TV interview on Channel 10 in which she was interviewed about her financial situation. Although the client was not in overdraft and there was no indication that the client would not meet the repayment of the loan in full and on time, the bank did not bother to contact the client and did not inquire with her before carrying out unilateral operations on her account. In doing so, the bank beached its duties towards the client and will therefore compensate to her.