Banks are required to report to the customer before any intention to return a check

From this week, banks are required to report to the customer before any intention to return a check through which he paid for a product or service. The reform that will prevent the return of checks without cover is implemented in accordance with the amendment of the "Checks without cover" law initiated by MK Yaakov Asher, former chairman of the Constitution Committee, which requires banks in Israel not to return a check without giving the customer a business day notice , Thus giving customers a period of time to deposit the missing money in the account and prevent themselves from the financial registration of a limited customer.
In a procedure that existed until today, before the amendment of the law, banks were not obliged to update account holders that their check might be refused due to lack of coverage. The account holder only became aware of this in retrospect, after the check had already been refused by the bank and entered into the count of 10 checks counted by law that make the customer an economic stain holder as a "limited customer".
In the existing procedure there is a built-in distortion as a check refusal exposes the customer to restrictions that may be imposed on him and his account, all while knowing in advance he could have tried and deposited funds in his account that would allow the check to be repaid. MK Asher sought to correct this distortion in his bill, which was approved by the Knesset a year ago and today this significant amendment enters into force.
The bill stipulates that in order to prevent as much as possible the refusal of checks, the bank will be required to notify the account holder by text message or recorded message by phone that there is insufficient balance in the account that allows the check to be paid and given at least one business day. Deposit the money in the account.
To avoid refusing a check after receiving such a notice, the customer must deposit in his account the missing amount up to two and a half hours before the end of the banking business day, i.e .: until 16:00. The notice will be sent to the account holder as early as possible at the beginning of the day, to give him enough time to try and take care of depositing the money in the account.
The notice will benefit both the account holder who gave the check that he will have the option of preventing the check from being rejected and the consequences that this refusal may have, and the recipient of the check who can deposit the check for payment and receive the consideration due to him without the check being refused.
MK Asher said that "this is an important social law of the first order that will make a big difference in the banking system and correct a distortion of years. I congratulate the Bank of Israel on its mobilization to implement the revolution in the banking systems, in a line that benefits all parties, both customers and banks.