Question:
Is the late fee a drug testing company charges if payment wasn’t made on time considered interest?
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
Answer
Any late fee charged because of not paying one’s debt by the due date is considered interest, thus prohibited. One should ensure they pay their bills on time to avoid paying late fees, which are in actuality interest.
An Introduction to Islamic Finance: p. 133 (Quranic Studies Publishers)
Only Allah knows best
Written by Maulana Mohammad Ahsan Osmani
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham