חוק הגנת הצרכן (תיקון מס' 46), התשע"ו–2016Law on Consumer Protection (Amendment No. 46), 2016 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Consumer Protection Law (Amendment No. 46) (hereinafter – the Amendment) was passed in second and third reading on 13 June 2016. The purpose of this Amendment is to require a dealer to notify a consumer of the existence of a debt owed by the consumer, to regulate the manner of such notification, and to ensure that a dealer does not take collection measures before notifying the consumer of the debt. First, the Amendment requires a dealer claiming that a consumer owes it a debt to send the consumer a debt notice within four months from the date set for payment of the debt. The debt notice must include the material details relating to the debt, namely the details of the dealer and the transaction, details regarding the debt and how it was calculated, and ways to contact the dealer regarding the debt. The Amendment provides that the dealer itself, and not a third party, must send the debt notice, and that it must be sent as a separate document. The Amendment also provides that the dealer must send the debt notice to the consumer's address as registered with it, and if the consumer's address is not known to it – to the consumer's address as registered in the Population Registry. However, the Amendment provides that if a consumer has given explicit prior consent, the dealer may send the debt notice not by mail but by text message or by computerized means. In addition, the Amendment requires a dealer, if requested by the consumer, to send the consumer, within 14 days of the request, documentation confirming the existence of the transaction in respect of which the debt notice was sent. Furthermore, the Amendment provides that a dealer may not take any action aimed at collecting a debt, including sending a warning prior to taking legal proceedings, or charge the consumer collection expenses, except for charging the consumer linkage differentials and interest under law or agreement, if 14 days have not yet passed from the day the debt notice was sent to the consumer. The Amendment establishes sanctions to be imposed on dealers who violate its provisions. The Consumer Protection Authority may impose a financial sanction on a dealer who did not send the consumer a debt notice or documentation confirming the existence of the transaction. In addition, a dealer who takes an action aimed at collecting a debt or charges the consumer collection expenses without having sent a debt notice in accordance with the Amendment may be subject to a double sanction: first, the Consumer Protection Authority may impose a financial sanction on it; second, the Registrar of Execution or a court may reduce the collection expenses, in whole or in part, if the dealer claims these expenses in the course of collection proceedings or a lawsuit. The Amendment comes into effect three months from the date of its publication in the Official Gazette, and it shall also apply to transactions concluded before its effective date, provided that the debt arose from the date of its publication onward.

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