Question
I purchased some vehicles via ABSA Islamic banking. I queried with them the Shar'i validity of me being charged contract fees on the basis that (1) The bank buys a car for R150,000 and sells it to me for R199,000 making a profit of R49,000. (2) All Ulama who are not on the bank's payroll have said that contract fees are against Shar'i principles. I object as I feel that all these charges under a variety of captions, are related to the same sale transaction wherein the bank makes a good profit. I last bought five cars. Thus they made an additional gain of R7,500 (R1,500 per vehicle). This they did under the banner of Islamic Finance approved by the bank Ulama. They charged R7,500 fees for contracts that were printed on paper and ink worth less than R30. Please comment.
Answer
"Bank Ulama" are mercenaries. They are paid lucrative bribes to churn out permissible fatwas for the illegitimate creature they dub 'islamic finance'. In reality it is Riba Finance'. The so-called 'Islamic' banking is a big fraud in terms of the Shariah. These banks are no different from the conventional kuffaar riba banks.
As far as the R1,500 charge is concerned, it depends how the deal was structured. If at the time of purchasing the vehicle, the final amount had included the R1500 charge, and you had accepted it, then the actual purchase price is that final amount. It is now improper to object. You should have objected at the time of the transaction. You should have refused the R1500 fee at that time. But since you had accepted the final figure of R151,500 (R150,000 + R1,500), it constitutes the purchase price. But, if the R1,500 was a later accretion which the Bank added, then you must object and refuse to pay it. All charges added after finalization of the price will be haraam riba.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 20 No 04
- PDF page
- 2
Appears under Questions and Answers (approximate).