What is the ruling on purchasing a car from a public auction belonging to an interest-based bank, if the bank repossessed the car from those who defaulted on their installment payments?

It is permissible to purchase a car from a usurious bank's auction under two conditions:

1. That the owner of the car has authorized the bank to sell it, or a court has ruled so. This is because it is impermissible for the bank to sell a collateral without the client's permission or a judicial order. It is stated in "Zad Al-Mustaqni'": "And when the debt becomes due and he refrains from paying it, if the mortgagor has authorized the mortgagee to sell it, he sells it and pays off the debt. Otherwise, the judge compels him to pay it off or sell the collateral. If he does not, the judge sells it and pays off his debt."

2. That it is offered in the auction at market price. This is because it is impermissible to diminish the owner's right or take anything from his property without his willing consent. It is stated in "Mughni Al-Muhtaj": "The just person (trustee) should not sell the mortgaged item except for its market price immediately, in the currency of its country, just like an agent. If he violates any of these, the sale is invalid."

It is not disliked to purchase from someone who is compelled to sell to settle their debts. The correct view is that there is no dislike, rather it may even be desirable to relieve the distressed person from their predicament.