Analysis of information sources in references of the Wikipedia article "Challenges in Islamic finance" in English language version.
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The prevalent position, however, seems to be that creditors may impose penalties for late payments, which have to be donated, whether by the creditor or directly by the client, to a charity, but a flat fee to be paid to the creditor as a recompense for the cost of collection is also acceptable to many fuqaha.
The bank can only impose penalties for late payment by agreeing to `purify` them by donating them to charity.
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