Consumers: Shaken – and restored – confidence in obtaining refunds

Let’s say you brought home a brand-new microwave oven, opened the box, and then realized that it didn’t fit in your kitchen. You tried returning it, requesting a refund, but the store told you that since you opened the box (even though you didn’t plug it in) they wouldn’t take it back.

You already knew that you had 14 days to return the microwave, but the seller had shaken your confidence with their “opening the box” claim. What is your next move? When you are not sure of your legal rights, or believe those rights have been infringed, you can contact one of the country’s three consumer-advocate organizations and ask for help. Or you can choose a legal remedy.

Attorney Kirill Shefer, an expert in business and consumer law, believes that of these four options, Small Claims Court is your best bet by far. But first things first...

1. The Consumer Protection Fair Trade Authority (Harashut lehaganat hatzarchan u’lesahar hogen)

The Consumer Protection Fair Trade Authority (Harashut lehaganat hatzarchan u’lesahar hogen) is an independent branch in the Economy and Industry Ministry and under the authority of the minister. It is meant to function as a regulator that enforces consumer laws and penalizes those who break them by imposing fines. As such, the authority welcomes complaints about businesses that violate the law, and when it sees a pattern, or someone from a vulnerable segment of the population (children, new immigrants) whose rights appear to have been violated, it usually begins to investigate.

When the authority investigates, and although in some cases you may receive compensation from the seller, it could take time for you to see results.

A few weeks ago the Authority inaugurated a phone number, (02) 539-6000, that you can call with questions, on Sundays and Wednesdays between 10 a.m. and 12 noon.

You may file a complaint in English, by fax ((02) 666-2590) or email – cpfta@economy.gov.il

2. The Israel Consumer Council (Hamoetza Hayisraelit letzarchanut)

The Israel Consumer Council (Hamoetza Hayisraelit letzarchanut) is an independent organization established by law to protect consumer rights. The organization does not have the authority to punish sellers who violate the law, but when the council believes that your rights have been infringed it may try to get you compensation and, if that does not work, may assist you in filing a complaint in the Small Claims Court.

There is a call center (1-700-727-888) at the Council and I tried it with a minor problem of my own. I was told to check the blog/forum (in Hebrew only), but when I explained that I am not comfortable in Hebrew (too true!) I was advised to send a fax or email in English and was promised that an expert would get back to me – which she did, more than a week later. A friend called with a question and was told either to send a complaint or look the answer up on Internet.

A recent article in TheMarker blasted the council, stating that there have been cutbacks in the number of people dealing with consumer complaints and that therefore it can take a long time for someone to deal with your problem. We have heard this often from people in the past, but to the council’s credit, a friend recently filed a complaint on the website (again, very difficult if you don’t know Hebrew) and it was dealt with immediately. (TheMarker noted that a whole new board of directors was appointed a few months ago, and perhaps a new day has dawned).

The council’s web site, www.consumers.org.il, is loaded with information – in Hebrew only. If you wish to file a complaint, find someone to help you use the form on the web site and fill it out in Hebrew. Otherwise, your complaint may take longer to process.

To lodge a complaint in English, send a fax to (03) 624-1035.

3. Civic Trust (Emun hatzibur)

Civic Trust is an NGO whose goal is to promote fairness and service-oriented behavior among businesses and service providers in Israel. The trust bestows a special seal on businesses that operate with fairness and transparency.

Like the other organizations, Civic Trust treats tens of thousands of complaints annually. You can submit a complaint in English by email (moked@emun.org), snail mail (29 Hamered Street, Tel Aviv, second floor) or fax ((03) 560-1384) Complaints are sent to one of the Civic Trust lawyers, who attempts to solve the problem without your having to go to court. You then receive a call, explaining the outcome. If you are not satisfied, the Trust may continue a dialogue between you and the seller/business, and/or you may be advised to go to court.

Civic Trust mans a hotline where you can get answers to your questions Sunday to Thursday from 3 to 5 p.m. The number is (03) 560-6069 (press 4 for English, then 7).

4. Small Claims Court

Before you sue a business that isn’t behaving honorably, make sure you are in the right. Then, says attorney Shefer, send the defendant a written letter of intent.

Send the letter by registered mail, and ask the post office to send you a notice that it has been received (ishur mesira). In the letter, inform the seller that, unless your money is returned or the situation resolved within a set number of days, you will be filing a claim in Small Claims Court for an infringement of your rights. Also explain that you plan to enforce your rights under the law and request reimbursement of any related expenses to date.

Should the seller refuse, or not respond, fill out a form, include all of your pertinent information, and send it (or take it) to the Small Claims Court in your area (call 077-270-3333 to find out where it is).

At the moment, while there is no minimum claim, the maximum you can ask for is NIS 33,500. Your fee to the court at this writing is 1 percent of your claim – and you get it back if you win (there is a minimum fee of NIS 50). But Shefer stresses that most claims are settled before trial, as stores do not like to spend time in court. For small transactions, if you file a claim against a store, the letter informing them that you are doing so may get you your money back right away. If not, the letter they receive from the courts may have the same effect.

You do not need a lawyer in small claims court: you can handle this on your own. Very important note: if your documents are in English, and the other side objects, you may need to get a notarized translation. Notary fees are prescribed by law, and who knows how much the translator will charge.

So if you can, it is better to bring everything – from the start – in Hebrew. If you need help writing the letters or filling in the forms, you can get it at your local Citizen Advice Bureau (SHIL).

In some cases, says Shefer, when the monetary damage is negligible but the seller infringed your rights, you may get compensation of up to NIS 10,000. For instance, when the seller refused to take a product back, or you were misinformed about a product or service.

Shefer explains that if the seller brings a lawyer to court and you happen to lose your suit, you generally are not obliged to pay the other party’s legal fees. However, if you brought a frivolous claim, or if you filed a claim in bad faith (knowing it was a bogus) this may upset the court and you may be required to pay expenses in full. This is entirely at the court’s discretion.

Should the other side not appear on the court date, you will want to avoid having your claim deferred to another time. When the judge asks “where is the other side?” stand up and say you want a oneside verdict (psak din bema’amad tzad ehad).

If you win, and the other side does not pay you within the specified time, give them a few extra weeks, let them know you are going to open a file in the Bailiff’s Office (hotza’a lefo’al) and if they don’t pay up, do so.

Next month’s column: Internet purchases from abroad, telemarketing, and a few of this country’s great, new consumer laws. Following this, attorney Kirill Shefer will discuss many of the consumer issues that you have written about in your emails to me. Further columns will tackle the pros and cons of senior residences, what to do about disagreements, issues with travel tickets and packages, the proper course of action if you are involved in a traffic accident, and how the court system works in Israel.

Thank you for your letters. Please continue writing in with general issues you would like me to explore, or to tell of your experiences with sellers and services. consumerjpost@gmail.com

Consumers: Shaken – and restored – confidence in obtaining refunds

What to do if stores do not honor the legal refund policy?