Fatwa #1455213 September 2006United Kingdom
I was fortunate enough to take out a new credit card with 0% interest for 3 months to pay off my bother. I am know in a situation that for the last 3 months I
Question
I was an investor in a business that belonged to a Muslim friend. Unfortunately this did not go well after about 12 months so I decided to ask for my money back. He informed me that he could only return back half of my investment (either in a few weeks time or when the stock had been sold), and I would have to wait for the rest of money as he had used it himself due to his financial difficulties and therefore he was not in a position to repay me. I naturally was very anger about this as he had been using my money for himself, for well over 9 months, without my knowledge.
I had already explained to him 4 months earlier that the money that I had invested had been a loan from my brother and he now needed his money back. I was fortunate enough to take out a new credit card with 0% interest for 3 months to pay off my bother. I am know in a situation that for the last 3 months I have been incurring interest on this credit card because the friend has not repaid me back the money he promised. I therefore asked him to at least pay the interest and make the minimum payments on the card until he is able to repay me back in full. He initially agreed to do this, but then came back to me and said that as it is haram to pay interest and therefore he will not make any payments, and that it is my responsibility, as he did not ask me to borrow the money from the credit card.
Could you please let me know whether, under the above circumstances, it is correct for me ask him to pay for the interest and the minimum payments on my credit card.
I had already explained to him 4 months earlier that the money that I had invested had been a loan from my brother and he now needed his money back. I was fortunate enough to take out a new credit card with 0% interest for 3 months to pay off my bother. I am know in a situation that for the last 3 months I have been incurring interest on this credit card because the friend has not repaid me back the money he promised. I therefore asked him to at least pay the interest and make the minimum payments on the card until he is able to repay me back in full. He initially agreed to do this, but then came back to me and said that as it is haram to pay interest and therefore he will not make any payments, and that it is my responsibility, as he did not ask me to borrow the money from the credit card.
Could you please let me know whether, under the above circumstances, it is correct for me ask him to pay for the interest and the minimum payments on my credit card.
Answer
Before we respond to your query it is important that we understand the nature of the investment. Was the investment with your friend a partnership agreement or was it that you would provide the finance and he would work and share the profits. Or was it a loan that you had advanced to him. It is important that the above is clarified before responding.
Nevertheless, your friend will not be responsible to pay for the interest accrued on the credit card. He will be responsible to pay whatever is due to you according to your agreement.
And Allah Knows Best
Mufti Ebrahim Desai