Adapted from the writings of Dayan Yitzhak Grossman April 18, 2024 AP News reports: A…
Ribbis in Unexpected Places
Avissar Family Ribbis Initiative
Many common financial transactions involve ribbis, so pitfalls abound for the unaware. Following are some common business activities that can, depending on the circumstances, constitute ribbis.
• COSIGNING cosigning on a loan or car lease, even where the lender isn’t Jewish or is a publicly-traded financial institution
• CREDIT CARDS using a friend’s credit card
• STRAW PURCHASING purchasing a home in someone else’s name
• PARTNERS borrowing done by one partner on behalf of the partnership
• LATE FEES charging ongoing late fees in a contract (a one-time late fee for each occurrence is permitted)
• RETURNABLE ITEMS selling goods with an unconditional money-back guarantee
• CONVERSION borrowing money in a foreign currency
• FACTORING purchasing receivables
• CASH DISCOUNTS charging different prices for cash and credit
• EARLY BIRD DISCOUNT offering a heavily discounted price for paying before a certain date
• PRE-PAYMENT DISCOUNT paying today to lock in a reduced price for an item that is not yet available