Fatwa #1435128 June 2006United States of America
I am not rich to offer house financing or auto financing
Question
I need to know if there is any islamic finance business that is permissible, I am not rich to offer house financing or auto financing. I have read most of your fatwas and honestly everything seems to be haram and allah knows best. This is the only type of business that i enjoy. I would like to know if i purchase other peoples debt can i collect on them for a fee.
For example If I purchase 300,000 worth of debt which might invole interest(credit card debt, auto debt) for 20,000. Can I procedd to collect on that. I may only recover 20,000 or may recover 150k-200k. Collections great deal of work. Is this Haram or not
Answer
Your question is not clear.
According to our understanding, you will pay the creditor his debt and proceed to collect the debt for the debtor. This is a transferral of a debt and the debtor has to agree. As an alternative, you could serve as a debt collector and charge a fee for that.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai