Finance glossary
Redress
Also known as: Compensation, Remediation
In simple terms
Redress is what a firm does to put things right when it has treated you unfairly — usually compensation to return you to the position you would have been in if the problem had not happened.
On this page
What does redress mean?
Redress is the remedy you receive when a financial firm has done something wrong. The usual principle is to put you back in the position you would have been in had the problem not occurred — often through a refund or compensation.
Redress can also include correcting a mistake, waiving a charge, paying interest on money you were wrongly out of pocket, and sometimes an amount for distress and inconvenience.
How redress works
Redress usually follows a complaint. If a firm accepts it got something wrong — or the Financial Ombudsman Service decides in your favour — the firm is expected to calculate and pay fair redress.
In large-scale cases, the FCA can require firms to run a “redress scheme” to identify affected customers and pay them, as happened with payment protection insurance (PPI). Where a firm has failed, the FSCS may pay redress instead, within its limits.
How could this affect me?
Redress is the tangible outcome of a successful complaint — the money or fix you are actually owed. Understanding it helps you check that a firm’s offer genuinely puts you back to where you should be.
If you think an offer is too low or does not cover your losses (including interest or distress), you can push back, and escalate to the Ombudsman, which can direct fair redress.
Things to watch out for
- Redress aims to put you back where you should have been — check an offer really does that before accepting.
- Fair redress can include interest and an amount for distress and inconvenience, not just a bare refund.
- Accepting an offer may settle the complaint in full, so be sure before you sign.
- If a firm has failed, redress may come from the FSCS instead, subject to its limits.
Know your rights
- Where a firm has treated you unfairly, you are entitled to fair redress to put you back in the position you would have been in.
- The Financial Ombudsman Service can direct a firm to pay redress, and its decision is binding on the firm if you accept it.
- The FCA can require firms to run redress schemes for widespread failings; the FSCS may pay redress where a firm has failed.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- FCA, DISP APP — handling complaints and redress (opens in a new tab). Accessed 22 Aug 2026.
- Financial Ombudsman Service, What we can do to put things right (opens in a new tab). Accessed 22 Aug 2026.