Lifting Bank Account Restrictions Due to Bounced Checks: A Unique Expertise of Our Firm
For many years, we have specialized in removing restrictions on business bank accounts imposed due to bounced checks (in accordance with the Israeli “Checks Without Cover Law, 5741-1981). We boast an impressive track record of success in hundreds of appeals against such restrictions, providing services to clients across various business sectors. Our clientele includes high-profile individuals seeking swift and efficient removal of account restrictions to avoid severe reputational or commercial damage—among them well-known attorneys (and even judges), accountants, public figures, large corporations, and more.
Exclusive Achievements in Confidential Proceedings
Our firm is the only one that has managed, in special cases, to obtain gag orders and hold closed court sessions during hearings on account restrictions. This was done to prevent significant reputational harm to a large corporation until the restriction was ultimately lifted entirely—without any publication or record of its existence.
Understanding the Complexity and Urgency
A bank account restriction due to bounced checks is a complex legal situation that requires professional and immediate attention. Such a restriction prevents the client from withdrawing funds via checks and leads to the widespread refusal of checks drawn on the account. It can cause catastrophic financial and reputational damage, including the closure of bank and commercial credit lines (with suppliers), harm to business reputation, and loss of customers—sometimes leading to the complete collapse of operations and the organization. Cases of “severe restriction” place the organization in even greater peril.
Unlike a regular bank account restriction, a severe restriction occurs when an additional account of a “restricted client” is limited before the end of the previous restriction period or within three years after its conclusion. In such a case, all bank accounts—as well as joint accounts and accounts where the client is authorized—will be restricted for a period of two years.
Acting Swiftly and Decisively
In most cases, it is possible to remove the account restriction if action is taken quickly, decisively, and within the prescribed timeframe, which is up to 20 days from the date of receiving the restriction notice. Contrary to popular belief, the bank will usually not cancel a restriction that has already been declared, due to fear of liability and damage to its credibility. Dealing directly with the bank in such cases may cause you to miss the deadline for filing an appeal. Therefore, it is often advisable to avoid wasting valuable time on futile attempts to persuade the bank to cancel the restriction (unless it does so immediately upon the first approach). Such independent dealings may also be used against you later and limit our legal maneuvering room during the appeal.
Our Proven Process
The process includes holding an urgent meeting (if necessary, via Zoom to save time and expedite handling) to analyze the circumstances of the case and establish an appropriate strategy. For this purpose, we require relevant documents such as the restriction notice, account statements, approvals of credit limits and balances, and evidence of unforeseen events that led to insufficient funds. It is important to know that the refusal of checks can be challenged on a wide range of grounds.
If the chances are favorable, we are prepared to file the appeal and a request for a temporary injunction within one business day (and if necessary, within a few hours). The injunction will “freeze” the account restriction until the appeal is decided, and if you acted quickly enough, this will be done before the restriction indication reaches business and banking information databases.
Experience Makes the Difference
The quality of representation, experience, and expertise often tip the scales. Common examples of cases where we succeeded in canceling account restrictions include issues related to the check beneficiary, such as a check given as security, a check whose payment was made in advance and deposited by mistake, or a check deposited not on time. Additionally, bank failures—such as reneging on a promise to honor the check, hindering the deposit of cash or redemption of savings to return within the credit limit, and preferring to honor another (less important) charge like a loan or credit card while creating an overdraft—can lead to the cancellation of the restriction.
Moreover, unusual and unforeseen events—such as emergency call-up for military reserve duty, job termination, refusal of a deposited check in your favor, sudden security or wartime events leading to a decline in income, strikes, or lockouts—may serve as effective arguments for canceling the restriction.
A Unique Field Requiring In-Depth Knowledge
Lifting bank account restrictions due to bounced checks is a specialized field requiring deep knowledge and familiarity with relevant case law. Here, the attorney’s acquaintance with bank representatives, the Bank of Israel, and the unwritten rules related to this unique procedure is particularly beneficial. We offer our clients professional and urgent representation, allowing them to minimize financial damages and prevent harm to their reputation.
Contact Us Immediately
We invite you to reach out to us immediately upon learning of the restriction so that we can provide you with swift and professional legal advice, increasing your chances of successfully canceling the restriction.