Question Summary:
i would like to know if its is permisble to work for a debt collection agency.where debt is bought from another company eg £5000 pound debt bought for £500 then we would have to chase the customer to pay the full amount in full,

Question Detail:

sallam i would like to know if its is permisble to work for a debt collection agency.where debt is bought from another company eg £5000 pound  debt bought for £500 then we would have to chase the customer to pay the full amount in full,this debt might be from a credit card with interest on.would my wages be hahal.thankyou

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
It is not permissible to work for a debt collection agency, as the transactions mentioned in your query (buying off debts) are based on interest, which is strictly forbidden in Shari'ah. Severe warnings have been mentioned in the Holy Quran and the Ahadith of Nabi (Sallallahu 'Alaihi Wasallam) regarding those involved in interest and usury.
Allah Ta’ala mentions in the Holy Quran:
الذين يأكلون الربا لا يقومون إلا كما يقوم الذي يتخبطه الشيطان من المس ذلك بأنهم قالوا إنما البيع مثل الربا وأحل الله البيع وحرم الربا.
Those who take ribā (usury or interest) will not stand but as stands the one whom the demon has driven crazy by his touch. That is because they have said: “Sale is but like ribā”, while Allah has permitted sale, and prohibited ribā. (Verse: 2:275)
يا أيها الذين آمنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين. فإن لم تفعلوا فأذنوا بحرب من الله ورسوله وإن تبتم فلكم رءوس أموالكم لا تظلمون ولا تظلمون.
O you who believe, fear Allah and give up what still remains of ribā, if you are believers. But if you do not (give it up), then listen to the declaration of war from Allah and His Messenger. However, If you repent, yours is your principal. Neither wrong, nor be wronged. (Verse: 2:278,279)
Nabi (Sallahu ‘Alaihi Wasallam) has not only forbidden Muslims from giving and taking interest, but also forbidden them from writing down the transaction of interest and witnessing it.
عن جابر قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء. (رواه مسلم)
Hazrath Jabir (Radhiyallahu Anhu) narrates that Nabi (Sallahu ‘Alaihi Wasallam) cursed those who are involved in usury; whether it is the person who is giving usury, receiving it, writing the transaction or witnessing it.
(Sahih Muslim Vol.11 Pg.28 – Dar al-Ma’rifah)
In light of the abovementioned, you should seek an alternate employment. However, whilst in that process, you may continue to work if you do not have any other source of income to sustain you and your dependants. Consequently, you should also make tawbah and istighfaar.
And Allah knows best
Wassalam
Ml. Asif Umar,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah