Ribbit — Payment for an Overdraft Due to Delayed Payment
Question
Buying on credit: A person bought on credit for several years. Now he has money to repay the debt. The store owner was forced to borrow money from the bank because of this. Is the buyer permitted to compensate the store owner for the overdraft? Is this considered payment of expenses, which is permitted?
Answer
Shalom u’vrachah.
It is forbidden to pay him for the overdraft that was created because of your debt. This constitutes ribbit.
Source
See Taz, Yoreh De’ah, siman 170, se’if katan 3.
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