After successfully completing a five month ordeal with a major telecommunications provider, I felt the need to share the experience and its lessons in order to help you with your daily interactions with companies, big and small, in Israel. Upon my return to Israel last summer, I noticed a very large, completely unexpected, charge on my credit card (for over 4,000 NIS). Initial investigation led to the discovery of the reason for the extraordinary fee. While abroad, I had exceeded my package for cell phone internet usage and the company had decided to charge me a rate that was 15 times higher than my agreed-upon package. It was clear to me that the company had erred tremendously in their bill, and they failed to follow basic consumer norms of conduct.
After long and exhaustive attempts to communicate with multiple representatives and their managers, not only was my frustration level growing, but I could see that I was getting absolutely nowhere. It was like talking to a wall, over and over again. So I did what every small consumer in Israel should consider, I filed a small claims case against the company. With no legal training (and only some very limited legal advice) I did basic research online and filed a claim at our local court here in Beit Shemesh. Small claims can be filed for amounts up to 32,700 NIS and it will cost a minor administrative fee to file (1% of the claim amount or a minimum fee of approximately 80 NIS). While the process took me several hours to put together, it probably didn’t take as long as the time I had spent on the phone trying to unsuccessfully get my money back. Lo and behold, one week prior to the allotted time for the company’s response to the court, I received a phone call from the legal department of the aforementioned company, offering to pay the entire claim amount and a percentage of the damage that I was requesting as well. So what can we learn from this experience?
- Check your bills and reconcile your financial records (account reconciliation is the process of ensuring that your personal records of transactions on a bank account or credit card statement match the bank or credit card statement that you receive each month). It’s important to do this on a regular basis no matter where you live, as financial mistakes abound throughout the world. Some suggest that mistakes occur in one out of every ten credit card bills. In Israel, the problem is magnified by language: if understanding the bills is hard because they are in Hebrew, you are less likely to check them. Don’t assume the bills are correct. Without checking them, you are very likely wasting thousands of shekels over time. Personally, I’ve found mistakes in my family’s mortgage statements, bank charges, electricity, phone, water and other bills. Don’t assume that just because you told someone to do something or correct an error, that they did it right! Honest mistakes happen all the time – not to mention the mistakes that are not always so honest.
- Compare prices and negotiate – Price differentials between different stores, providers and/or distribution methods can be very significant. Are you paying more than necessary for a specific item or service? While spending hours to save a few shekels might be overkill, large items and expenses that recur monthly should be properly researched. Prices are incredibly dynamic in Israel, and what you thought was a great price might now not be so favorable. Don’t expect service providers (like your phone or internet services) to update you when your package deal expires: they usually increase the price without notifying you. Even if they do send notification, you may not understand the documents. The language barrier can be substantial and you need to compensate for it. Make sure that you understand what you are committing to before signing. Be proactive: Schedule a time to call your service providers every six or twelve months to ensure you’re getting the best deal. The extra effort can make a substantial difference in many areas of your budget.
- Legal recourse can be necessary – although trying to reason with service providers is always a good first step, unfortunately many times the only language companies understand is legal. Large companies have disproportionate power vis a vis lone consumers and they often use that power to bully customers. The consumer laws that recently came into effect empower consumers, but they don’t necessarily discourage businesses from acting unethically. Know your rights and be willing to fight for them if the stakes are high enough. That doesn’t mean you need to file a claim or take someone to Beit Din for every 100 NIS you feel you are owed. However, often all it takes is for you to show how serious the issue is by filing a claim to move service providers in the right direction.
Remember, the business and consumer environment in Israel is very different than many Western countries. Living in the Middle East requires Westerners to change their ‘fixed price’ mentality and start negotiating … on almost all purchases. Ask for discounts at any opportunity. Don’t be embarrassed – that’s the way Israel operates and no one will think any worse of you as a result. These small (and sometimes large) discounts can save you a tremendous amount of money over time.