Ruling on PPI Money

Question:

Is it allowed to claim for PPI money which comes with interest? At times the interest is apparent and broken down, but most of the time the interest amount is unknown but its certainly added with the amount.

Answer:

بسم الله الرحمن الرحيم

One is only allowed to claim for the amount he had paid as PPI. Any extra money will be considered as interest and haram. Therefore, one may check his payment history and only claim the amount he had paid. If any extra money received from the PPI claim, should be given to the poor without the intention of gaining reward.

Allah knows best
Syed Hussain ibn Imamuddin
11 Shaʻban1442 / 24 March 2021

Approved by
Mufti Muhammad Tahir Wadee (حفظه الله)
Darul Uloom Bury, UK

References

قال سبحانه وتعالى: وَاَحَلَّ اللّٰهُ الۡبَيۡعَ وَحَرَّمَ الرِّبٰوا – البقرة ٢٧٥

وعَنْ جَابِرٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ. رواه مسلم۔

وقال ابن عابدين في رد المحتار: ويردونها على أربابها إن عرفوهم، وإلا تصدقوا بها لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه۔