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Charging a fee for late payment

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: If someone has to pay you money after a certain period of time and he doesn’t pay, is it allowed to charge him with administration fees or any other fees?

Bismillaah

A: This is not permissible. It is pure riba (interest) and interest is haraam.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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