What is the ruling on purchasing in installments from a store that the bank pays the price to immediately, and then the bank collects the installments from the buyer? Is this considered usury (riba), especially if the bank does not own the goods? What is the ruling if the contract includes a late payment penalty?

Regarding the relationship between the bank and the transaction, if the bank pays the price on behalf of the customer and then charges the customer an increased amount, this is a usurious and prohibited loan. However, if the transaction is between the customer and a commercial store selling goods in installments, and then the store sells its debt to the bank for the bank to collect from the customer, this is a prohibited sale of debt to someone other than the debtor. Anyone who knows the reality of the situation is not permitted to assist in sin. Imposing a late payment penalty for delayed payment is impermissible, and it is absolutely impermissible to enter into a contract that includes such a condition, whether with the bank or the store.