Can interest money be used to pay parking fines?
The answer
The receiving and giving of interest is totally impermissible. In the unfortunate event of being involved in an interest bearing transaction, the interest money must be returned to its original owner (the one from whom interest was received). If it is not possible to give it back to its original owner, then one must dispose of such money by giving it away in charity.[1]
Explanation
Therefore, it is not permissible to take benefit from interest funds to pay off a parking fine.
And Allah knows best.
Mufti Faraz Adam
References
1(قَوْلُهُ كَمَا بَسَطَهُ الزَّيْلَعِيُّ) حَيْثُ قَالَ لِأَنَّهُ كَالْمَغْصُوبِ وَقَالَ فِي النِّهَايَةِ: قَالَ بَعْضُ مَشَايِخِنَا:كَسْبُ الْمُغَنِّيَةِ كَالْمَغْصُوبِ لَمْ يَحِلَّ أَخْذُهُ، وَعَلَى هَذَا قَالُوا لَوْ مَاتَ الرَّجُلُ وَكَسْبُهُ مِنْ بَيْعِ الْبَاذَقِ أَوْ الظُّلْمِ أَوْ أَخْذِ الرِّشْوَةِ يَتَوَرَّعُ الْوَرَثَةُ، وَلَا يَأْخُذُونَ مِنْهُ شَيْئًا وَهُوَ أَوْلَى بِهِمْ وَيَرُدُّونَهَا عَلَى أَرْبَابِهَا إنْ عَرَفُوهُمْ، وَإِلَّا تَصَدَّقُوا بِهَا لِأَنَّ سَبِيلَ الْكَسْبِ الْخَبِيثِ التَّصَدُّقُ إذَا تَعَذَّرَ الرَّدُّ عَلَى صَاحِبِهِ اه (رد المحتار ج 6 ص 385 أيج أيم سعيد)
Based on the Hanafi school and on the question as it was asked. Another mufti may reach a different conclusion. Read the disclaimer.