Q: I am seeking guidance regarding a matter related halaal and haraam.
I live in the United Arab Emirates, and we are not very well off, we struggle at times to buy things apart from the necessities.
There are two fintech companies TABBY AND TAMARA.
Tabby was shariah compliant initially when they started, splitting each bill into 4 installments and so was tamara. Tamara is still 4 installments. But tabby has now introduced installments in 6 months, 8 months and also 12 months and when they started here, there was a fatwa on their website too, they don't say that it is interest, there's an extra amount that they charge which they call processing/service fee, I want to know is that interest? I have multiple payments spilt across because I did not know it and just realised it, also because initially there were fatwa on the tabby website. For tamara, there is also a fatwa and they have mentioned names of scholars who have given fatwas
All of the shariah resolutions are attached on their website too, so I want to know if what they calling the 'Processing fee' is not interest and allowed for me to use as it is really helpful, and if it is not, then I have multiple payments spread across both companies and I am not in a position to pay it all off as we struggle big time financially. As someone striving to act in accordance with the teachings of Islam, I want to ensure that my actions are pleasing to Allah Ta'ala.
A: The transaction between yourself and these companies is not permissible. The reason is that they are paying the merchant on your behalf and thereafter, they are charging you interest on the debt which you owe them. Therefore, you should not have any dealings with these companies.
And Allah Ta'ala (الله تعالى) knows best.
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