Is it permissible for an Islamic bank to impose a financial penalty on a client if they are late in paying the installments for a car purchased by installment?

Fines imposed for delayed payment of money are usury (riba), and it is not permissible for the bank to impose them. The issue of people evading payment can be addressed by requiring a solvent guarantor or through the courts to compel those who are negligent to pay what they owe.