Q&A: Claiming Late-Payment Penalties (Indexation and Interest)
Claiming Late-Payment Penalties (Indexation and Interest)
Question
Hello Rabbi,
About two years ago I ordered a service from a tradesman/service provider for about 14,000 NIS. The service provider did not provide the service, and recently I decided to sue in small claims court for a refund of the money. Is it permissible to claim indexation and interest on the amount from two years ago? In addition, is it permissible to claim compensation for the hassle involved in getting the money back (filing the claim, etc.)?
Best regards,
Answer
There is authority to rely on: https://www.toraland.org.il/%D7%9E%D7%90%D7%9E%D7%A8%D7%99%D7%9D/%D7%9B%D7%9C%D7%9B%D7%9C%D7%94-%D7%95%D7%9E%D7%A9%D7%A4%D7%98/%D7%9E%D7%A9%D7%A4%D7%98-%D7%94%D7%AA%D7%95%D7%A8%D7%94/%D7%94%D7%95%D7%A6%D7%90%D7%95%D7%AA-%D7%92%D7%91%D7%99%D7%99%D7%94/
And here:
https://eretzhemdah.org/newsletterArticle.asp?lang=he&pageid=43&cat=5&newsletter=441&article=1656
And here:
http://www.moreshet.co.il/web/shut/print.asp?id=17549&kod=&modul=15&codeClient=558