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The question

What is the ruling of the Sharia regarding the permissibility of what is known as "legal interest" that is requested in a statement of claim for a delayed financial demand?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

If the legal interest is usurious due to late payment, then it is forbidden. It is not permissible to take it or to participate in preparing its documents and claims for its proof. However, if it is in exchange for what the creditor spent in attorney fees and judicial procedures due to the procrastination of a debtor who is able to pay, then there is no blame upon the creditor for taking it and demanding it. It is permissible for the lawyer to act on his behalf in demanding it and writing the claims for it.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
104846
Imported
Translation status
Source text, unreviewed
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