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Spending usurious interests in paying off the debts of insolvent persons or others, who are in debt to the company

Q: The questioner has posed the following question: Answering your kind request according to your letter no. 779/2, dated 07/02/1419 A. H., I attach to this letter the memorandum of association and the articles of association of the company as you required, drawing your attention to articles no. 17 and 46, in addition to a photocopy of the relative article of the Saudi Companies Law.Here, I would like to pose another question in addition to my previous question sent to you in letter no. (1206 Sheen, Qaf/ 98) on 09/01/1419 A. H., namely this company has correspondent usurious banks outside the Kingdom to facilitate the interests of the clients of the company when transferring money to their countries. The system followed by the other banks is that the correspondent bank pays the transfer value on behalf of the local bank, then it collects the same amount from the local bank, (Part No. 11; Page No. 118) in addition to a usurious interest. As the company (posing this question) is earnestly interested in having its dealings be free of Riba (usury) and in avoiding payment of such interests, it deposits beforehand sums of money in the correspondent banks before transferring money to them. In this way we avoid paying the usurious interest to them; but in this case, they pay us a usurious interest [of the money deposited]. We put the interest aside and do not add them to the profits of the company, as we spend it in charity. The question here is: Is it permissible for the company to use such interests in paying the debts of insolvent persons who cannot repay the money due on them to the company as acquittance for them, if it is proven that they are really insolvent and the company is fully certain of their inability to repay? Is it also lawful to do the same with regard to the persons who died while owing money to the company and whose heirs cannot pay these debts, or who only left their heirs the houses they are dwelling in? Please give us a Fatwa (legal opinion issued by a qualified Muslim scholar) on this question. May Allah reward you. May Allah prolong the life of Your Eminence, and bless it. For, He is the best to be supplicated.


A: It is not lawful to spend usurious interests in paying off the debts of insolvent persons or others, who are in debt to the company. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.


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