The validity of a debt collection agent
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Fatwa No. ( 20706 )
Q: We inform Your Eminence that the Saudi Debt Collection Company is a specialized company for collecting debts on behalf of others, licensed by the Ministry of Commerce, and operates in the field of debt collection. Since its work requires it to deal with banks in executing judgments issued against bank customers by the competent authorities; such as: the Monetary Authority, the Arab Bank, the Commercial Paper Committee, the legal committees in the Chambers of Commerce, the Board of Grievances, and the Shari'ah courts. The Debt Collection Company is an agent in executing and following up on these decisions and collecting the returns from them, most of which are through settlement. Given our desire to seek Your Eminence's opinion on such an activity, as it is considered a service to deliver rights to their owners under the system, instructions, and Shari'ah and legal texts, knowing that the company performs this work for a fixed fee paid according to the agreement with the bank. Some cases are presented to us that do not have judgments, which we resolve through settlement or reconciliation by mutual consent of the parties, and to block some means or due to some
rumors, we wanted to direct you to us, and may Allah preserve you.
A: If the debts mentioned are in permissible transactions free from Shari'ah prohibitions, there is no harm in collecting them and cooperating with their owners. However, if they include forbidden matters, such as riba loans, for example, it is not permissible to enter into them; due to the generality of the saying of Allah the Exalted:[Al-Ma'idah 5:2] . And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: We inform Your Eminence that the Saudi Debt Collection Company is a specialized company for collecting debts on behalf of others, licensed by the Ministry of Commerce, and operates in the field of debt collection. Since its work requires it to deal with banks in executing judgments issued against bank customers by the competent authorities; such as: the Monetary Authority, the Arab Bank, the Commercial Paper Committee, the legal committees in the Chambers of Commerce, the Board of Grievances, and the Shari'ah courts. The Debt Collection Company is an agent in executing and following up on these decisions and collecting the returns from them, most of which are through settlement. Given our desire to seek Your Eminence's opinion on such an activity, as it is considered a service to deliver rights to their owners under the system, instructions, and Shari'ah and legal texts, knowing that the company performs this work for a fixed fee paid according to the agreement with the bank. Some cases are presented to us that do not have judgments, which we resolve through settlement or reconciliation by mutual consent of the parties, and to block some means or due to some
rumors, we wanted to direct you to us, and may Allah preserve you.
A: If the debts mentioned are in permissible transactions free from Shari'ah prohibitions, there is no harm in collecting them and cooperating with their owners. However, if they include forbidden matters, such as riba loans, for example, it is not permissible to enter into them; due to the generality of the saying of Allah the Exalted:
And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.
وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَى وَلاَ تَعَاوَنُوا عَلَى الإِثْمِ وَالْعُدْوَانِ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.