Ask the Rabbi
- Family and Society
- Finance and Halacha
- Banking and Interest
Question
Is charging a late fee on a tuition or registration as charging interest?
Could you site sources, please.
Answer
A one-time fine for paying after a certain date is permitted (Shulchan Aruch Yoreh Deah 177 14-16; Shach Yoreh Deah 177 33; see Shu"t Shevet HaLevi VIII 193). If the fine is per month or per week this is more problematic and the institution should use a "heter iska".
Financial help
Rabbi Yoel Lieberman | Sivan 15, 5781
Shmitat Kesaffim - Pruzbol regarding Heter Iska
Rabbi Ari Shvat | Adar 16, 5781
Heter Iska
Rabbi Ari Shvat | Cheshvan 1, 5784
