How does an installment company buying a product and then selling it to the customer in installments relate to riba?

If the installment company purchases the commodity and sells it by installments after it has entered into its possession and guarantee, the problem lies in its imposition of fees when the customer delays in paying the debt. This is usury (riba). It is not permissible to enter into a contract that includes this condition, because any increase on the debt upon delay in payment, whether with or without a prior condition, is considered prohibited usury. A penalty clause is permissible in all financial contracts except for contracts where the original obligation is a debt, for this is clear usury.