Paying back a debt to the bank taken on one's name by another person
Category:
Business Dealings & Money Matters
According to Madhhab:
Hanafi
Reference:
1440-608
Question:
About
6 years ago I was approached by my mother and brother (my brother convinced me
and coerceded my mother into using my name to get loans for various materialistic
objects such as cars).
They asked if they could use my name to get loans for themselves, they assured
me the accounts would be paid in full by my brother and my mom said she’ll make
sure he pays it. They were blacklisted their names couldn’t be used.
I had no access to any of the accounts or benefited from any of the loans that
were taken on my name but was all not mine. I was also never was in possession
of any cards or funds from the loans they have accumulated over a period over
the years from multiple banks.
My mother tried her best to pay back as she could over the past 5 years but 2
years ago My mother has passed (May Allah be pleased with her) and i still have
around R200 000 debt on my name, which my brother is not interested in and
denies ownership of the debt.
He tells me that I should ignore the debt and not worry to pay it as we don’t
have the means the banks will eventually write the debt as they have insurance
on it.
But I somehow feel this is wrong and I am stressed feeling liable for the debt.
Am I responsible for the debt even though it wasn’t mine? Please advise
6 years ago I was approached by my mother and brother (my brother convinced me
and coerceded my mother into using my name to get loans for various materialistic
objects such as cars).
They asked if they could use my name to get loans for themselves, they assured
me the accounts would be paid in full by my brother and my mom said she’ll make
sure he pays it. They were blacklisted their names couldn’t be used.
I had no access to any of the accounts or benefited from any of the loans that
were taken on my name but was all not mine. I was also never was in possession
of any cards or funds from the loans they have accumulated over a period over
the years from multiple banks.
My mother tried her best to pay back as she could over the past 5 years but 2
years ago My mother has passed (May Allah be pleased with her) and i still have
around R200 000 debt on my name, which my brother is not interested in and
denies ownership of the debt.
He tells me that I should ignore the debt and not worry to pay it as we don’t
have the means the banks will eventually write the debt as they have insurance
on it.
But I somehow feel this is wrong and I am stressed feeling liable for the debt.
Am I responsible for the debt even though it wasn’t mine? Please advise
Answer:
Taking loans from banks is at all costs impermissible as it involves interest.
و أحل الله البيع و حرم الربا
Translation: And Allah has permitted trade and has forbidden interest (Al Baqarah 275).
One should repent and abstain from dealing or assisting in anything that involves interest. As far as the debt is concerned, you will be liable for the debt since you consented to your account being used. In other words you took a loan from the bank –because the account can only be accessed by you and it is opened with the express intent of you being fully liable for what tansactions take place- and gave it to your brother and mother. Any accountability that will come from the bank will be upon your shoulders.
Your brother is totally wrong in his advice and you will not be absolved by that fraudulent loophole.
AND ALLAH TA'AALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST
ANSWERED BY: Najeeb Muhammad
CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B.
Islamic Date:٤ محرم ١٤٤١
English Date: 4 September 2019