Interest on an Installment Deal

Heter Iska

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Question

Installed a gas system in the car, and if paying in cash, it costs less, if paying by credit card in one payment, it costs a bit more, and if paying by credit card in twelve installments, it costs even more. However, the company installing the system says that the reason for the additional charge is that the credit company gives them the entire payment in cash and charges them a commission, so they do not earn more when paying in installments, only the credit company does. Is this considered a loan with interest only regarding the credit company that has a heter iska, or also regarding the gas company that does not have a heter iska?

Answer

It is considered a loan also regarding the gas installation company, because they act as a guarantor, and they also require a heter iska.

Source

Taz, Siman 170, Se'if Katan 2

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