Is it permissible to sell an invoice to another company to demand payment when a 0% late payment interest rate is specified, and the second party delays payment, causing harm? Is the amount added for late payment usury (riba) or a disciplinary fine (ta'zir)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is forbidden for a creditor to impose a financial penalty on a debtor who is late in payment, because it is a Riba (usury) of Jahiliyyah (pre-Islamic era), and this condition is void and impermissible to fulfill. Likewise, it is not permissible to sell a debt invoice () if the debt is in cash and sold for cash, because it constitutes currency exchange with deferment.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/143774
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- Ftawy
- Original fatwa ID
- 143774
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy