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Have you opened an account at a Swiss bank? There's a good chance they tore you up - Walla! Of money

2022-06-28T15:39:13.383Z

In recent years, there has been a steady increase in the number of Israelis who choose to manage bank accounts with foreign banks, especially in Switzerland. What they do not know is that the banks probably owe them money



Have you opened an account at a Swiss bank?

There is a good chance they tore you up

In recent years, there has been a steady increase in the number of Israelis who choose to manage bank accounts with foreign banks, especially in Switzerland.

What they do not know is that the Swiss banks probably owe them money for illegally collecting fees

David Rosenthal

28/06/2022

Tuesday, 28 June 2022, 15:52

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In recent years, many Israelis have noticed the salient advantages of holding bank accounts in foreign countries and in Switzerland in particular.

Low levels of financial risk and high levels of privacy have attracted Israelis to invest their assets in the faraway country.

In a study published by the American research organization NBER, it was proven that Israeli customers constitute 2.5% of foreign investors' assets in banks in Switzerland, with Israel's share accounting for less than 1% of global growth.

In addition, the study estimated the value of Israeli assets in Switzerland at about $ 55 billion.

Therefore, those investors may be surprised to find out that the banks they have chosen to optimize their investments may owe them significant sums of money, which can reach thousands of dollars.

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As early as 2020, the Swiss Supreme Court ruled that banks in the Central European country, which has been considered for years as one of the most convenient places to conduct business in a variety of areas, will be obliged to retroactively repay commissions to their customers.

These refunds, called retrospectives, are refunds on fees charged directly to the customer, but banks and financial services have taken advantage of, and still take advantage of, their customers' lack of awareness on the subject, to continue to charge unnecessary fees.



Despite the dramatic ruling reached about two years ago, the banks in Switzerland have not yet returned everything required of them.

Claims management companies in Switzerland such as Liti Link, which specializes in litigation and financial claims against companies and helps Israeli customers get their money back, claim that Swiss banking institutions may still owe millions to investors abroad. Management fees, performance fees, fund managers' fees and advance management fees, "explains Hubert Schwartzler, CEO of Liti-Link." To return to investors. "



Schwartzler goes on to explain that "as stated, banks are obligated to return everything they received to their customers, plus interest of 5 percent for late payment. Customers who have invested large sums in potential Swiss banks can get a six-digit amount refund, given that they are entitled to 5% interest per annum. "The problem is that almost no non-local investor knows about the possibility of repaying these commissions."

Banks continue to charge despite the ruling.

Hubert Schwartzler (Photo: PR)

According to an estimate by Liti-Link, in 2020 alone, banks in Switzerland collected retrospectives in the amount of 205 million Swiss francs from Israeli customers, and this does not include arrears interest.

"Due to the statute of limitations of 10 years, it is also important to remember that the clock is ticking while investors have to claim the repayments," he adds.

How do you know if you owe money or if it pays to open a foreign bank account at all?

Schwartzler explains that "In the first stage, new customers should negotiate good rates and ask the bank to disclose all commissions, including so-called 'hidden commissions'. They should also insist on transferring retrospectives. A look at the fine print will definitely be useful here. As an investor, "It is important to request full transparency from the bank in advance. Existing customers, on the other hand, have the option of requesting disclosure of the disruptions that the bank has received over the past 10 years at least and claiming them back."



Beyond that, Schwartzler explains that Liti Link also operates in Israel.

The company serves as a liaison for foreign customers who hold a bank account in Switzerland to finance successful litigation and thus to enforce claims.

When we asked CEO Schwartzler whether it was still worthwhile to open a foreign bank account in Switzerland, he replied: “Every investor should consider for himself the pros and cons of a custody account in Switzerland.

In the long run it is huge to save 0.5 to 1% in commissions every year, as the profits accumulate every year.

Considerable additional returns can be earned here, which were not previously known to investors.

Companies like ours support investors from all over the world and take on 100% of the cost risk. "

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Source: walla

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