Are the interest payments on the delayed compensation, which a private institution in Belgium approved after an error that led to the loss of a right, haram?
Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 2026
It is permissible to accept financial compensation awarded by the court from an institution that committed an error, as it is akin to a ruling based on established custom. As for the mentioned interest, the default ruling concerning it is that it is usurious and forbidden. However, it is possible that it is a doubling of the penalty, in which case it would be permissible to take it. Since the matter is ambiguous, take the compensation and disburse the interest for charitable causes. We advise consulting the European Council for Fatwa and Research, as they are more knowledgeable about this issue.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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