I have just acquired a new phone. My phone service provider offered me the possibility of acquiring my phone through a scheme that works as follows: Upon subscription to the plan, I paid a proportion of the value price of the phone. The remainder, I’ll pay in 24 monthly installments. The contract stipulates that under this scheme the phone remains the property of the service provider until I acquit the entire sum + £100 as a purchase option. The contract lays out that there is no annual loan interest applicable. Therefore there seems to be none (at least nowhere is it mentioned). There is however a 4% penalty fee to be due should I fail to meet the payment of my installments. Is there anything that could constitute riba?