The Practice of Double Charges on Gold Pawnbroking Products According to Islamic Commercial Law: A study of the sharia pawnbroker in Banda Aceh

Abstract

This research article explores the practice of double costs in Sharia-compliant pawnbroking transactions, which is considered potentially contrary to the core principles of Islamic economics, such as justice, transparency, and the prohibition of usury. In the context of Sharia pawnbroking, the fees charged to customers generally cover administrative costs and storage services; however, in practice, these are often applied separately, thereby creating an additional burden. This situation, which is particularly prevalent in the Aceh region, raises questions regarding the compliance of such practices with the rahn contract and the principles of muamalah fiqh.  This study aims to evaluate the extent to which the double-cost practice aligns with Sharia principles and to examine the regulations governing it, including OJK policies. Using a normative legal approach, this study examines legal documents, scholars’ perspectives, and existing regulations. This practice indicates that applying double cost can violate principles of justice and erode public trust in Islamic financial institutions if not implemented in a proportionate and transparent manner. Therefore, a comprehensive evaluation and the formulation of stricter Sharia guidelines are necessary to ensure that Islamic financial services continue to uphold Islamic values and provide adequate protection for customers.