I borrowed a friend money to buy a house with no interest.(Amount of 220 000. repayment amount of 2000 with 15% increase of the payment amount annualy) They never paid me for 2 years.(Saying they have no money).They said they can afford only 2300 a month-I know they can afford more.I have asked them pay the arrears and continue paying what we initially agreed or sell the house. What rights my islamic rights? How can I solved this problem? Can you please e-mail me with the answer? Jazakallah.
Answer:
As salaamu alaykum wa rahmatullahi wa barakatuhu
Dear respected Brother in Islam,
We deeply regret the contents of your letter and may Allah Ta’ala assist you in resolving the dispute.
As a point we wish to inform you that it is not permissible to charge the 15% increase on the debt, as that is interest.
In order to resolve the dispute, we suggest you inform them that you will not take the 15% increase for the past two years as well as in the future since that will be a considerable decrease of approximately R35,000 over the approximately 114 months (nine and half years), therefore they should also consider and expedite previous & timeous payments. We hope this offer will serve as an incentive and amicably resolve the dispute.
And Allah Ta’ala knows best
Mufti E. Desai