Late payment charges
Question: 590
Assalamu alikum
My question concerns bills related to telephone or university tuition. If you
delay the payment of the telephone bill they add an extra amount by a certain
percentage of the bill and if you further delay by another month an extra
amount is added to the previous total using the same percentage on the whole
amount.
Are these extra amounts riba or if it is not riba is it still haram to pay this extra
amount?
Jazakallah kheir
Praise be to Allah, and peace and blessings be upon the Messenger of Allah and his family.
Al-hamdu lillaah.
Yes, this extra amount is undoubtedly considered ribaa, as the longer period for
payment they allow you the more they increase the amount for you to pay. You need to
refuse this kind of transaction. If you are forced, then pay the original sum without the
extra amount. If you are forced to pay the extra amount, then pay it while offering
repentance to Allaah and committing not to deal in such transactions again.
Source:
Sheikh Muhammed Salih Al-Munajjid
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