Is it permissible for the Yemeni Islamic Bank to take late payment penalties from customers who are overdue in repaying their installments, based on the principle of "the rich person's delay [in paying debt] is an injustice," by deducting it from the customer's debit balance if there is no credit balance available, for delays exceeding five days?

Taking a financial penalty from someone who delays in paying an installment is forbidden by Islamic law, and it is a form of riba al-Jahiliyyah (usury of the pre-Islamic era). Citing the prohibition against procrastination (by a debtor) is incorrect because, firstly, it applies to the wealthy, whereas most of those who delay payments are poor. Secondly, it is not permissible to take the money of a wealthy person for their procrastination; rather, their case should be brought before the ruler to compel them to pay or to imprison them. Thus, the punishment for a wealthy debtor who procrastinates is imprisonment and stern words.