Is it permissible for the oppressed to demand financial compensation in exchange for forgiving the one who wronged them, and what is the duty of the oppressor then?

A Muslim must fear Allah regarding people's honor. Whoever falls into backbiting (gheebah) or slander (nameemah) should hasten to repent with remorse and seeking forgiveness. It is not a condition to inform the person who was backbitten, according to a group of verifiers, rather it is sufficient to repent between oneself and Allah, mention the person kindly in the places where backbiting occurred, and seek forgiveness for them.

If the wronged person demands money in exchange for forgiveness for an offense against their honor (like backbiting), it is not permissible to give them money, because it is not permissible for them to take compensation for their honor. Repentance in this case is done by seeking forgiveness and mentioning the wronged person kindly.

In contrast, some scholars have held the view that it is permissible to give money to the wronged person if that is necessary for them to forgive. As for injustices involving physical assault and the like, reconciliation can be made with money.