An Israeli court has ruled against an insurance agency that attempted to settle a legal debt using thousands of low-denomination coins without clear documentation. The unusual payment method, while technically legal, was deemed insufficient after the plaintiff claimed he hadn’t received the full amount.
The case began with a small claims court ruling last year ordering the agency to pay NIS 600 (approximately $160) to a private individual. Instead of transferring the funds electronically, the agency delivered the sum in coins and bills, specifically thousands of 10-agorot coins (each worth roughly 3 cents USD). The plaintiff said the payment was incomplete and filed for enforcement with the national debt collection agency.
The agency claimed it had delivered the funds directly to the plaintiff’s home, counted the money at least three times, and provided video evidence of the coins being counted by a machine and left in cloth bags outside the plaintiff’s door. However, the plaintiff argued that the move was retaliatory and humiliating, claiming the bags contained only NIS 543.70, far short of the NIS 600 judgment, and included some worthless foreign currency.
Court Ruling and Implications
The court ultimately found the agency’s documentation insufficient and upheld the enforcement claim, warning others that even legal tender must be clearly documented when settling debts. The registrar noted that while paying with small coins isn’t prohibited by law, the debtor was obligated to thoroughly document the counting process and the amount left in the bags.
Attorney Ilan Hazani, a debt collection expert not involved in the proceedings, said the case underscored the importance of fair conduct by debtors. “Paying with small coins isn’t new—and courts have previously criticized such tactics,” Hazani noted. “Even if technically lawful, it’s seen as abusing a formal right to inconvenience the other party.”
The ruling serves as a warning to debtors considering similar strategies, as the insurance company ended up paying five times the original debt.
