Ruling on delaying payment of bills on which interest is charged

The one who
has bills to pay should not delay payment if delay will result in penalties,
because the penalty in this case is riba (interest, usury). This is the riba
of the Jaahiliyyah which is also known as riba al-nasi’ah. The owner of the
wealth would say to the debtor: “Either pay the debt or it will be
increased.” 

The one who
delays payment when he is able to pay is a partner in this riba, and the sin
is on both parties. 

The
Messenger (peace and blessings of Allaah be upon him) cursed the one
who consumes riba and the one who pays it. Narrated by Muslim (1597). 

But if he
delays payment and he did not know about this situation, or he delayed it
because of pressing circumstances, then the sin is on the company that
imposes this penalty of riba. 

These
companies and institutions should give up charging these riba penalties;
they could warn people and withhold services from them instead of charging
these riba penalties. 

And Allaah knows
best.