sweetpsalmist
New member
Assalam Walkaikum all,
I've come across this relatively new feature in my Chase credit card account which is called "Pay over time". It allows any transactions on your card above a certain amount to be paid in installments, rather than due in full on your next statement close. It states there is no interest involved, however, there is a 'monthly fee' that is fixed which you pay per month, over the period of time you select (6 months, 12 months, 18 months). In some cases the monthly fee is $0.00, perhaps as a promotional way to get people to use the program.
My question is, in the instance the monthly fee is say, $10.00 per month for paying over 6 months, is this not the same type of payment over time that we can reference from the hadith of the Prophet (S) as well as general consensus amongst the 4 madhabs? Some references below:
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The Hanafi madhhab: “The price may be raised in return for delaying payment,” (Badaa’i’ al-Sanaa’i’, 5/187)
The Maaliki madhhab: “For more time some amount may be added to the price.” (Bidaayat al-Mujtahid, 2/108)
The Shaafa’i madhhab: “Five in cash is equivalent to six in deferred payment.” (al-Wajeez by al-Ghazaali, 1/85)
The Hanbali madhhab: “Delay add something to the price.” (Fataawa Ibn Taymiyah, 29/499).
In addition, Shaykh Ibn Baaz was asked about the ruling on increasing the price in return for delaying payment, He said:
"There is nothing wrong with this transaction because paying cash for the product is different from delaying payment. The Muslims are still doing such transactions and this is like consensus that it is permissible. Some scholars held an odd opinion and said that it is not permissible to increase the price in return for delaying payment, and they thought that this was a kind of riba, but this is a baseless view. It is not a kind of riba at all, because when the dealer sells the product to be paid for later, he agrees to the delay so that he may benefit from the increase in price, and the purchaser agrees to the increase so that he may take his time and because he is unable to pay the price in cash on the spot. So both of them benefit from this transaction. There is a proven report from the Prophet (peace and blessings of Allaah be upon him) which indicates that this is permissible; he commanded ‘Abd-Allaah ibn ‘Amr ibn al-‘Aas (may Allaah be pleased with him) to equip an army and he was buying one camel for two camels, to be handed over at a later date."
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Would this program be lawful when considering the above, assuming that there are no other hidden fees associated?
I've come across this relatively new feature in my Chase credit card account which is called "Pay over time". It allows any transactions on your card above a certain amount to be paid in installments, rather than due in full on your next statement close. It states there is no interest involved, however, there is a 'monthly fee' that is fixed which you pay per month, over the period of time you select (6 months, 12 months, 18 months). In some cases the monthly fee is $0.00, perhaps as a promotional way to get people to use the program.
My question is, in the instance the monthly fee is say, $10.00 per month for paying over 6 months, is this not the same type of payment over time that we can reference from the hadith of the Prophet (S) as well as general consensus amongst the 4 madhabs? Some references below:
----
The Hanafi madhhab: “The price may be raised in return for delaying payment,” (Badaa’i’ al-Sanaa’i’, 5/187)
The Maaliki madhhab: “For more time some amount may be added to the price.” (Bidaayat al-Mujtahid, 2/108)
The Shaafa’i madhhab: “Five in cash is equivalent to six in deferred payment.” (al-Wajeez by al-Ghazaali, 1/85)
The Hanbali madhhab: “Delay add something to the price.” (Fataawa Ibn Taymiyah, 29/499).
In addition, Shaykh Ibn Baaz was asked about the ruling on increasing the price in return for delaying payment, He said:
"There is nothing wrong with this transaction because paying cash for the product is different from delaying payment. The Muslims are still doing such transactions and this is like consensus that it is permissible. Some scholars held an odd opinion and said that it is not permissible to increase the price in return for delaying payment, and they thought that this was a kind of riba, but this is a baseless view. It is not a kind of riba at all, because when the dealer sells the product to be paid for later, he agrees to the delay so that he may benefit from the increase in price, and the purchaser agrees to the increase so that he may take his time and because he is unable to pay the price in cash on the spot. So both of them benefit from this transaction. There is a proven report from the Prophet (peace and blessings of Allaah be upon him) which indicates that this is permissible; he commanded ‘Abd-Allaah ibn ‘Amr ibn al-‘Aas (may Allaah be pleased with him) to equip an army and he was buying one camel for two camels, to be handed over at a later date."
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Would this program be lawful when considering the above, assuming that there are no other hidden fees associated?