The ICC credit card company will allow a postponement of loans to its customers until the end of the year, against the background of the outline of the loan freeze published today (Tuesday) by the Bank of Israel. Although ICC does not join the entire outline, it is adopting its share and will allow until the end of the year to request a deferral of loans to any customer who wishes to do so, for three months.
This morning, the Bank of Israel published a new outline for extending the freeze on household loans, which allows for a freeze of up to six months. This is a voluntary outline to which the banks have joined, while the credit card companies, as far as is known, have not yet adopted the outline in full. However, the credit card company Max stated that it allows for deferral of loans to its customers, and in practice since March it has been accustomed to approve requests for deferral of loan payments of all customers who need it due to the corona crisis.
The Arlozorov Forum set up by the Histadrut sent a letter on the subject to the Supervisor of Banks, Yair Avidan, wondering what the difference is between the players.
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“Why was a similar announcement not issued (regarding the freezing of AA loans) regarding loans granted and provided by credit card companies that are also supervised by the Supervisor of Banks at the Bank of Israel? “They are working quite aggressively to provide loans in various forms of credit to households, many of which are currently in dire financial straits,” writes Ran Melamed, who heads the forum.
In the letter, Avidan was asked whether the credit card companies had applied pressure to be excluded from the outline. “Does the Bank of Israel actually give a gift to credit card companies at the expense of the consumer public,” the letter said.
MK Hila Shai and Zan (Blue and White) also demand that the loan freeze outline also apply to credit card companies: “The credit card companies managed to ‘evade’ the outline, and I will work with the Supervisor of Banks to include them as well,” she said.
Against this background, the chairman of the Economics Committee, MK Yaakov Margi, asked the Supervisor of Banks, David Avidan, to act to include the credit card companies in the outline and to specify why they were not included in the first place. “The entry of credit card companies as full-fledged players into the consumer and business credit market also involves taking social responsibility,” he wrote.
Margie also referred to the decision facing Avidan and Finance Minister Israel Katz regarding the issue of reducing bank credit card frameworks, and warned that “the refusal of credit companies to take part in this outline of deferring loan payments raises serious concerns about the ability to rely on credit card companies and implement the reduction. The frameworks as an article and as a language. “
It should be remembered that the outline is not a binding provision, but each financial entity could have decided on its own whether to join or not. Currently all banks intend to join (as was the case in the previous outline), and ICC has announced that it will partially adopt it.
The new outline for freezing loans was published today, which shows that households that have already frozen consumer credit will be able to extend the duration of the loan freeze until the end of the year. In addition, those who have not yet applied for a loan freeze will be able to do so by the end of the year and receive a freeze for six months, while in the previous outline the freeze could be requested until the end of October. The frozen payments are valid for loans of up to NIS 100,000, and the frozen payments will be added to the end of the loan repayment period.
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