Tashlumim (Installment Payments) in Israel: Friend or Foe?

While owing a credit card can be of assistance to many - when used correctly, they can become a source of tremendous problems when used incorrectly. Not all countries are equal however...

While all countries will allow you to debit your card with a payment when you wish to purchase something, a country like Israel has an additional credit option over and above this regular facility.

Let's get this clear from the beginning - anyone using a card irresponsibly will find himself in serious trouble within just one month. It's not the plastic that makes the purchase. It's the money in the account that comes off the account when the credit card is due for payment - something many forget! Of course if you find yourself in need of carrying this piece of plastic with you because for any number of reasons, carrying another payment type (cash or cheque) is uncomfortable, but actually do have the money in your account, then your credit card can assist you when you find you just don't have the cash on you. Purchasing items on the Internet (responsibly) can be done using your card. Not having the card may mean you lose out on a book you may be able to obtain from overseas (or any other item you may need at the time.) But again, if you forget that - while the payment goes through, it has not actually gone through until some other date during the month when the bank account is actually debited - avoid this piece of plastic in every way you can!

In Israel, there's an additional payment method made to "help" you when money is tight. It's called "Tashlumim" (תשלומים). The word Tashlum means payment, though the correct translation in this case would be "installment". In other words, you go to the sports store and notice a wonderful fitness machine that you simply must have! It will set you back ₪4000 - but when it comes to being fit - it's worth it (you say to yourself!) You ask the store owner (perhaps) if he can give you a discount. He replies that he cannot, but not to worry, you can purchase the item in Tashlumim. In fact, you probably won't even feel the money being paid - he may convince you. He tells you that in Israel you can often get up to 24 months of Tashlumim - so your ₪4000 super-powered aerboic swimming/cycling/flying machine will cost you just ₪167.67 per month. Now isn't that affordable - he asks? He's convinced you. Your account has convinced you. Your card has convinced you and you go ahead and make the purchase. The item is delivered and for a week (for a start) you're a fitness freak! Slowly it starts to settle in though that though the item is in your home - you still have another 23 payments to make.

The salesman will also convince you that your Tashlumim are free. What's "great" about this Tashlum business is that you'll be sure to meet another Tashlum fanatic at your next grocery purchase. You'll meet another one selling your electricity. Another selling you some other widget-gadget and so it goes on. Each of these salesman will also convince you that purchasing through Tashlumim is the way to go! In fact, when you check out from the superstore, you may encounter a smiling teller ask you "Tashlumim or Ragil"? He's asking if you want the payment to be made over a series of months or if it should come off in one go. In fact, the way he says it clearly points to Tashlumim being the way to go. You may even choose it!

Fine! So you have your super-aerobic machine now on Tashlumim, and you've even bought your groceries on Tashlumim. You've paid for you electricity on Tashlumim and a whole bunch of other things which all seemed to be just ₪150 every month. But you've forgotten the biggest thing. After ten such purchases - that month alone - you'll be obligating yourself for ₪1500 a month for 24 months! But that's not all, because once the next month comes around, you'll find yourself doing the same thing. You'll now be adding your original ten Tashlumim with another 10! Before long, you'll find yourself in tremdendous debt - making use of a completely "useful" and "helpful" Israeli payment system. Essentially, you've now turned your credit card into a doubled-credit card! It seems like you can get more out of it. But you can't.

What's more - the point they never tell you - you'll be paying a fee of around 50 aggarot per "pushed off" installment payment. In other words, if you "sign up" for the ten Tashlumim offer, you'll be forking out another 5 Shekel each month for the hidden costs of those payments. It never sounds like much when you think of "just" ₪5, but that's the point they all want you to think - until of course you realise just how much these "small" amounts add up to!

There is only one way to get a hold on these things once you realise what is happening. Avoid this form of payment wherever you can. It should clearly only be used by a responsible person in a very responsible and needed urgent situation. Relying on it - just because it seems to be the done thing, with everyone offering it can be the start of tremendous financial problems. 

Think of it this way... Instead of the ten Tashlum each month that cost ₪1500, see if you can purchase a super powered aerobic swimming/cycling/flying machine at that price outright and buying it straight out if you can. This way you'll have a great working machine that will be yours from the start - and not having to worry about the payments every single month. Likewise - consider managing all your purchases in this way. As each month goes by - rather put the money you would be putting into Tashlumim - into one item that you know you can pay for right away. If you can't - consider very well the real cost and time involved when making that Tashlum purchase!

Credit card debt is so easy to get into. In Israel, there's just one more way for helping you get into it even faster. Tashlumim. Be aware of what it is, and what it can actually end up costing you in the long run!

For more assistance on understanding some of the lifestyle in Israel and how you can get a better grasp of succeeding to live here, do contact us for a one on one life skills consultation.

** This post is offered to provide information to help the reader consider the points discussed for his own situation in order to help make an informed decision for himself. For professional financial or other advice, always contact someone you feel is best suited to assist you.

Consumer Rights in Israel: Refund Policies

Many who make Aliyah do not realise that they have rights! Rights are available on many fronts. Most notably every person living in Israel has consumer rights. There is a terrific site available for those wanting to know their rights as a consumer. It is in Hebrew with an English version to it (The Israel Consumer Counsil.) The Hebrew (המועצה הישראלית לצרכנות) is especially beneficial when it comes to searching for something you're wondering about. You best be clear on the exact words that will describe the situation you are seeking.

Today's blog post is a winner! That's because one of the rights many are not aware of is being show up here clearly for those who have wondered about it! The law was instituted on the 14 December 2010 - and it's all about refund policies!

The famous question asked by all is, "If I purchase an item and within a short period of time realise it is not what I want, am I entitled to a refund?" The best example to give is when purchasing a faulty item which clearly doesn't work. One can also extend this to purchasing something, arriving home, and realising it's just not what one thought it was. At this point, one has not used the item, it is still in its original packaging and clearly shows that one has not in any intentional (or even unintentional) way broken it (which would bring the blame upon the consumer naturally.)

So here's the deal: You see a fancy looking landline phone you'd like. You purchase it. You plug it in at home, and the quality is simply awful! First point - learning your lesson not to judge a book by its cover! Second point: It doesn't matter what the salesman thinks of the phone - especially when he believes it's the best, nobody else has had problems with it, he uses it himself and is especially not prepared to test it out in the store to show you just how badly it does actually work! The salesman - after all, wants nothing more than to make his sale and walk away with his profit. He's not really interested in you owning a great phone (don't be fooled!) 

Third point - you need a different phone after all! You take the phone back. It's all still brand new. The owner of the store / salesman now looks at it and refuses to refund you.

Rule 1: He may not do this. You mention this to him, so he reluctantly offers you a credit. Rule 2: He may not do this either! In fact, if you have paid cash, he MUST reimburse you cash - no arguments! If you paid on a credit card, he MUST refund you on the SAME credit card. It's really simple! Don't ever let another store trick you into accepting a credit (which you may never use or want - as has actually happened to yours truly. Years later, the ink used on the credit slip even rubbed off!!!)

That's what is great about the consumer rights site. A brief look in at the law shows this up clearly:

קניתי מוצר בחנות והתחרטתי
?האם ניתן לבצע ביטול עסקה ולקבל את כספי חזרה

ב- 14/12/10 יכנסו לתוקף תקנות הגנת הצרכן (ביטול עסקה), המקנות לצרכן את הזכות לבטל עסקאות מסוימות באופן חד צדדי וללא סיבה כלשהי, ולקבל את כספו חזרה.

מדובר בזכות חרטה החלה על עסקאות "צרכניות", השונה מהזכויות האחרות הקובעות בחוק הגנת הצרכן כגון: זכות להתנתק מעסקה מתמשכת, זכות לבטל עסקה בשל הטעיה או ניצול מצוקה, זכות לבטל עסקת מכר מרחוק או עסקה ברוכלות.

מדובר בזכות חרטה ולא בזכות הביטול מכוח חוקים אחרים, שחלים על כל סוגי עסקאות – צרכניות ולא צרכניות : לדוגמה הזכות לבטל עסקה בשל הפרה מהותית של ההסכם, הזכות להחזיר מוצר ולקבל השבה מלאה במקרה של פגם במוצר

Welcome Home!!!

You may know that we are involved in assisting singles to marry through the Shidduch service we offer. We spend a great deal of time involved in (all) our activities and many hours speaking to singles - all in the hope of helping them to find their "partner for life!"

Yesterday I received a call from a middle aged fairly recently-divorced man with a big family. Being divorced now meant his pursuing a Shidduch again. Those - not so new to Shidduchim, know well just how much is involved in assisting anyone to marry, let alone someone with a large family and a divorce "under one's belt." What made this harder included an expectation to marry a much younger lady still able to have children because - to him - nobody else would be acceptable. There are many areas in Shidduchim that need to be addressed in the correct framework and structure. This is one of them. While everything is done for every person to find the perfect match for them, someone in a situation such as this may well need to compromise if having a relationship with someone for the rest of his life - is more important than adding another child to an already very large family. (This post is not the forum for addressing these issues. We do indeed do our best to assist everyone as much as we can even when we realise that some Shidduchim can be much harder to make happen than others!)

Not knowing who I was when I had called him earlier, and not answering the call, he called back some time later asking if I'd called for him. Not knowing who he was (he gave no name) at this stage and hearing him speak Hebrew, I asked if he could speak English. Indeed, he came from one of those English speaking countries in the world, but seemed to lapse into Hebrew again. I tried getting on track with the English (which he certainly spoke fluently) - which I succeeded in doing with much difficulty. He was not happy with the "Shmues" and wanted to hurry the call along since he had all of two minutes to talk. When I finally heard his name and realised he had responded to an advert of ours, I informed him that I was simply returning his call and asked how I could help him! He seemed to suddenly have a lot more time than the initial two minutes he could promise me. It was now I that hurried him along and asked him to call later when he did indeed have more time!

In the early evening, I received a call from someone speaking Hebrew again. It was the same gentleman who felt that Hebrew was the only way to go. His Israeli accent would surely reveal him to be a Sabra in the fullest sense of the word, but I didn't get that feeling that he actually was! I know people who have made Aliyah and living in Israel for over 50 years - and who still speak with their original overseas accents! He was obviously seriously attached to everything Israel.

After getting back on track with English - he asked me how long I had "been home." I laughed and asked if he meant "Israel". He struck me as someone committed to some sort of home here where Jews live together and really connect in unity.

I gave him about ten minutes of my time as I listened to his requirements for a Shidduch, but explained how much is involved and that we offer a very comprehensive interview at a charge. We work professionally and this is indeed a part of our Parnassah here. He was highly offended, clearly expecting us to work for nothing or with a definitive guarantee of success - something impossible to give over. I have heard even G-d has difficulties with Shidduchim comparing them to the same difficulty as the Splitting of the Reed Sea! (Note: Unfortunately many singles feel that those assisting in a professional capacity do not deserve payment. It is a wonder to consider the amounts they will pay for dates, phone calls, transport and other necessities towards the Shidduch - but fail to take into account the real efforts, cost and time of a human being putting in tremendous effort to help them in the best possible way - for nothing less than a "best friend for life!")

Personally, I've advertised in Israel media tens of times and more - each time costing large sums of money - never once being told if these adverts would meet with success. Many have received no replies at all - but I value the graphic artists time, the printing costs, distribution costs and just about everyone else involved in helping to get my advert out there - and so I pay fully - up-front without so much as a hesitation! I do this, because I realise they're "putting out" - so that I can get ahead too!

So why the title of the post "Welcome Home!!!"? Going back to my callers' question, "So how long have you been home?" It's just this. It's a kind of strange thing that happens here. Everyone is "friendly." Everyone is "connected." Everyone feels brotherhood and a hundred and one other synonyms that show Jewish unity. That is - all until it comes to someone earning a living and being able to actually live here! There's something missing in the Aliyah story. There are so many with smiles on their faces when they want something from you... but when it's you making your own living - there are thousands of excuses why payment will not be forthcoming.

So Welcome Home!!! But remember friends - if you're serious about unity, serious about connecting and loving a fellow Jew as much as your love for the Land of Israel - then when it comes to living issues -  paying for an honest service given is not just a painful grudging, "I guess I have to!" but rather it's a "I am in love with supporting another Jew trying to live here - just like everyone else, including me." "I pay him because he is giving over something to me through his own honest efforts." "I am honored to support him - right here in the Land of Israel, because I truly want him - my brother (my sister) and my friend - to live here with me, in his very own home - just like I do!

I can't wait for the day when I can offer my service and be paid for it - not with a sour face, not with a need to bargain me down to nothing, not with a "I'll pay you when you guarantee me (this or that)". I can't wait for the day, when a fellow Jew can turn around and say - "My friend, I honour and respect what you do - because I know you're helping me and others too." I can't wait to one day feel - I'm really home!

Rain, Blessing and Currency

Earlier today the sun was shining through, now we are blessed once more with further rain.

Rainfall in its proper time in Israel is in fact a blessing and one that translates to parnassa or money and currency. So we have two issues here
1) Rainfall and the water in Israel and
2) Money and currency

For the first, the past week has seen lovely rainfall in Eretz Yisrael falling mostly in the centre of the country, along the Mediteranian and Mt Hermon. The level of the Kineret is reported by the water authority to have risen 1 cm and by others to have remained the same.

Either way, at least there has not been a drop in water level and the water level is higher than it was last year. But the water authority requests that we do not be fooled. Weather reports predict that dryer weather lies in store.

Of course, being Am Yisrael, we don't rely on predictions but rather use them as a springboard for more action so keep on Davening we are not out of danger yet.

Speaking of Davening, if the rainfall and water in Israel is important to you and you are a Jewish women, please do join our international Tehillim group. We need more Jewish women uniting through Tefillah (and the additonal Torah and Tzeddakah).

Since rain and parnassa (money and income) are interconnected, let's answer a question asked a few times here. We often see people coming to this blog wanting to know the money of Israel. Israel does have its own currency which is Shekkels and Agarot. For some reason American dollars are sometimes also used.

I dont understand why but often apartment prices are quoted in US Dollars. Some business people, such as accountants, will also quote a figure in US dollars. But the truth is, that we have Shekkels and the coins are Agarot, so we really don't need to quote prices in any other currency.

Keep on Davening, learn the Hallachos of honesty in business and put them into practice. Together may we merit to be blessed with all our spiritual and physical needs for the good, a good that is revealed, manifest and visible.

Funny Money in Israel (Counterfeit Coins)

If you're living in Israel or thinking of making Aliyah - or just coming through for a holiday - don't assume that just because it's the Holyland that everything is Kosher! Of course it should be that way... but sometimes it's simply not!

I remember the days of going to Ulpan. I was new to getting into Israeli culture, and one thing that got to me was when in those very first few weeks I was bombarded with a number of counterfeit 10 shekel coins. I pointed this out to my Ulpan teacher who practically swore to me that such things don't exist in Israel and could never be! It didn't help that I actually had the evidence - because in her books she was already convinced that no such thing existed! 

As she told me - she had never handled such a coin in her life - and she was over 60. So maybe it's just an Oleh Chadash thing - kind of like a "disease" that cleaves to those making the move. Or maybe it only reaches those who don't yet know Hebrew. I'm not sure which one, but I've finally got around to photographing one of these coins - which I just so happened to pick up recently (again!) and remind myself to once again get back into the good habit of checking EVERY single coin I receive from another - no matter if he works for Egged or the Eida HaChareidit!

I've photographed the invalid coin with others and then presented it by itself to help you become aware of how to spot these false items. Remember, by law, if you've been given one of these special editions, you're not entitled to use it - so it's simply your bad luck. You best go into your local bank and hand it to them for destroying. If you've been handed tens or hundreds of these coins, it's simply your fault - so says the law! Remember the original criminal will not be held liable for the false coin - you will. So do watch out before accepting these coins. They are in fact - VERY common!

In our first picture below, you'll see 5 of these 10 Shekel coins.(I sure miss Golda Meir!) Can you spot the fraud?! 

It's the middle coin. Take a closer look. You'll notice it's a lot less shiny than the others. In addition, if you look at the outer surrounding edges of it, you'll feel a more plastic-like feel. And the best test yet?! Give it a good spin on a smooth table as it appears in the photo above. If it spins... and spins... and spins... it's a fraud! Try spinning an original 10 Shekel coin as it rests on the table as in the photo above and you'll see that it won't spin more than half a turn.

Our photo below shows the back of the coin. Again, notice how it lacks the shine of the other coins.

In the photo below, you can see the back of a true 10 shekel coin. It's shiny, and the text surrounding it is clear! You can see that every letter has been carved out.

The photo below shows the same coin right side up. It's clear, strong and shiny!

Now for the fraud (and the remembrance of a loss of lunch!) You'll see the back of the coin is smoothed on the sides and the lettering has not been carved out completely. It's almost lying flat on the surface. The coin is also not completely circular, but rather a little off shape. It's also not shiny! In fact it's completely dull!

It's not as easy to see the fraud from the front. But close attention to the detail will show the bronze section not fitting in perfectly to the silver, the text not carved out clearly, and a slight distortion to its shape.

So, don't be fooled. You'll find counterfeit money - even in Israel. Be on the lookout and check every single coin you get before putting it away. You see, if you do this, you'll at least be able to own the money you really have earned honestly! But if you don't check, you may find that even after having worked hard to earn your 10 shekel - you'll end up with absolutely nothing except a legal bother to have to take your coin to the bank, wait your turn like everyone else, deal with some pushing, shoving and shouting for the day - and finally hand over the offending item to be destroyed!

If you're the merciful type and have gained from this article, remember, you're welcome to help so that I can regain my opportunity to eat another lunch! Take a look at Lovingkindness - our site devoted to helping many Jews, and feel free to make a contribution of just 10 shekels by clicking on any of the donate buttons found there. Just type in your reason for the donation, "Compensating an Oleh Chadash for being swindled!"

What Can I do With my 5 Agarot Coins?

QUESTION:

Does anyone know whether the 5 agarot coins can still be used or if there is anything we can do with them? Do they have any value still?

ANSWER:

As the Bank of Israel is like the Federal Reserve Bank, they are responsible for printing and coining the money.

The Bank of Israel will accept them, as they will all coins.
The coins have to be sorted and bagged in lots of 500 (i.e. NIS 25 worth of 5 agorot coins).
You can redeem them at the Bank of Israel but you have to make an appointment.

The telephone number is (02) 655-2847.

Call between 2-4 pm (they're kind of particular). It takes about 10 days to get an appointment (appointment are between 8:30 - 2).

It's s bit of a pain but they're the only place that will take them without any argument or service fees.

For other creative ideas:

1) Women who light candles using those little glass holders (that look like a little shot glass with a stem) put a 5-agarot piece down at the bottom before placing the candle into the glass.  It helps to separate the hot candle from the glass, I guess, to prevent the glass from cracking.  I used to use this candle-lighting method (now I only use them on Sukkot when lighting outside).  The packages in which the glass holders come used to include 5-agarot pieces for this purpose, believe it or not.

2) Wash the coins from a hygiene point of view and you can use them for games with your kids. They are wonderful for playing supermarket or sorting, counting into piles of 5 or 10. You can be creative and find ways to help your kids "work" with the money. In this way you can help to improve fine motor skills, counting and basics for maths, increasing an interest in maths concepts. The value of using coins that are real but not usable with your kids is that they help the children  feel they are really using money, and yet if a coin falls somewhere that it gets lost, you need not get upset as it is a coin that would not be usable otherwise. Kids can also learn to put the coins in the Tzeddakah jar, with their right hand.

If you have other coins from other countries that you can not use, you can put them in a jar or dish and have your child sort them into similar types of coins. This helps them to develop a sense of detail, sorting the same size, shape, colour, texture. Also wonderful for helping kids with low vision or blind to improve their ability to differentiate by feel, very important for begining to learn money management skills.

Hatzlachah

Shoshanah Shear

Occupational Therapist

Opening a Bank Account in Israel

Opening a Bank Account

When opening a private bank account in Israel you should know a few of the loopholes. A private bank account is called in Hebrew “cheshbon osh” (Over V’Shav).

What can you do using an “Over V’Shav” account?

In fact, you can do almost everything. For example: you can pay most of the bills you receive in the mail, draft personal checks (in Israel you are allowed to write a postdated check), make transactions with other banks or pay your credit card bills (in fact you must have a bank account to pay your credit card bills in Israel).

Where to open your account?

Every major bank has branches all over the country so it won’t be hard to find a branch nearby your house. It is always better to work with the closest branch to your house. You will find that in Israel you will have to go to your bank often.

The bank should not prevent you from opening an account:

Any citizen is allowed to open an account except when the new client behaves improperly or the person had a previous account in the same bank and had “problems”.

Even when the client is considered “mugbal” (which happens when ten of your checks are bounced) the bank cannot deny you the right to open an account, but in this case the account will not have any credit frame. You won’t be able to be in deficit (minus). In addition you won’t be able to use or to have personal checks from this account.


What questions should you ask when opening a new account?

The most important question is not what the bank has to offer you, but if the bank can offer you the services and conditions you require. If you always have a positive balance in your account (one of the few in Israel who actually live within his budget!), receiving low interest for your deficit is not an advantage for you. If you don’t make many transactions in your account, a low fee for those transactions is not enough of an incentive for you. Therefore, look for what will serve your banking needs and not what the bank particularly offers you.

You will be informed that all the bank fees are listed and you will even be shown a list of those fees. Don’t be fooled – you can bargain over the fees, especially over those that you most use.

It will be very difficult to change anything that you didn’t ask for or bargain for once your account is active.

Your Credit Line:

By law the bank does not have to give you any credit line. Credit lines are a result of your assets in the bank, your credibility with the bank, and even a bit of the impression that you make on the bank personnel. It is easier to receive a credit line for those who have a steady salary. The higher your salary and the more money have in savings in the bank, the more credit you will receive. Please remember that this is not a free credit; interest is very high here and very difficult to calculate in advance (read the small print!).

Paperwork:

All the banks in Israel send you a regular statement by mail even though you can obtain all this information on the bank internet site. Please keep every piece of paper for seven years, as it is stipulated by law. You may never know when you may need them and in Israel you will certainly need them at some time.

Minimum Age for Opening an Account:

A minor can open a bank account after the age of 16. A minor over the age of 14 is also eligible to open an account on the condition that his parents (both parents) give and sign their permission in the bank.

From the age of 15, a minor who is working and receives a salary that is deposited in the bank can ask to open his own account in the bank, even without his parents signed agreement.

Credit Cards, Checks and Credit Lines for Minors:

Banks may issue credit cards to a minor who is 15 and is employed, as stated above. But no minor will receive a checkbook before the age of 16. Between the ages of 16 to 18, the bank will stamp in the checkbook that account holder is either a minor or juvenile. In addition, the amount of withdrawal for every check is limited to 400 shekels.

Minors can receive a bank card with which he can withdraw cash. The limit is 400 shekels a day, on the condition that the account is not in deficit. It is not possible to have credit lines for minors without the parents consent. Under no circumstances can the bank allow a withdrawal over the minor’s credit line.

It is possible to have a very limited debit card (again for purchases of up to 400 shekels a day).

Changing one’s account to another bank:

Not only is this permissible, but you will find that banks are always looking to attract new customers, especially if they have assets. Therefore, when changing banks you can always improve your existing privileges.

In addition, banks cannot charge more than a small fee to transfer your account.

Unfortunately there are many inconveniences when changing bank accounts. Even though your new bank you are transferring to will help you to have a smooth transfer, it is not a short process, and sometimes it is even unpleasant.

Changing bank accounts involves changing credit cards, checkbooks, automatic payments (very popular in Israel), and much more. So make a well-informed decision before taking this step and don’t be tempted by promises.

-- This post has been written for us by Tzvi (Henrique) Szajnbrum