Balance coverage commission
Q 3: I have dealt with a certain bank for 4 years. On requesting them to cover my balance when the balance is insufficient, which I will pay off as soon as possible, they agreed to do so provided that they add a coverage commission of about 10% of the amount covering (Part No. 13; Page No. 363) the balance, to the debt. Please, inform me about such coverage; is it Riba (usury/interest) or not? Is it permissible for me to deal with them bearing in mind that I will not put such an idea into practice until I receive a detailed answer as I fear the consequences of committing something Haram (unlawful) and Allah's wrath.
A: If the reality of dealing is as you have mentioned, it will be pure Riba, which you have to avoid, as it is a major sin. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
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