Home
Discover Islam
Quran Recitations
Lectures
Fatwa
Articles
Fiqh
E-Books
Women
Boys & Girls 
Enter Question
View By Subject
Fatwa Of The Week
Selected Fatwa
Fatwa CenterDealing with Debt Sold to a Debt Collection Agency
Question
I owe £500 to a company. I could not pay it in time so they sold it to a collection agency. However, the debt collection agencies purchase the debt at a much lower price which maybe £50 to £100. I have already paid the debt collection agency £270. So I am confused now. What should I do with the rest £230. Should I pay it to the debt collection agency or should I give that money in charity. Also, what about £270 that I have already paid to the agency. Do I need to pay it to the charity as well?
Answer
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad, sallallaahu 'alayhi wa sallam, is His slave and Messenger.
The questioner did not clarify whether the new company has waived the remaining amount (of the debt) or is still demanding payment.
It appears that the original company is no longer seeking anything from him. Rather, the new company (that purchased the debt) has become the legal creditor. Hence, if it waives its claim, the debt is cleared; but if it still demands payment, then the remaining amount must be paid to it.
As long as the questioner is in the UK and these companies are owned by non-Muslims, the issue of the sale of debt does not present a problem, because the dealings which non-Muslims consider valid are recognized in Shariah (Islamic Law). Thus, transactions will be conducted with them on that basis.
Shaykh al-Islām Ibn Taymiyyah 
said in Majmūʿ al-Fatāwā: “It is permissible to purchase from non-Muslims that which they have acquired through contracts they deem permissible - even if such contracts are prohibited in the religion of the Muslims.” [End quote]
He also said: “The scholars have stated: If non-Muslims conduct transactions among themselves which they believe to be permissible, and they have exchanged the money and goods with each other. Then if they bring their case to us, we will sanction the transactions that they have made — whether they bring them before us prior to accepting Islam or after it.” [End quote]
Based on the aforementioned, the debt that has been transferred to the collection agency will be considered its own right. Hence, you should therefore deal directly with that agency and settle the debt with them, and nothing further is required from you.
Allah knows best.
Search Fatwa
Fatwa Subject
