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Compensation For Arrest?

Being arrested for a crime you did not commit but for which the evidence seems to be point towards you can be a real stressed situation for the victim that is seen as a criminal by his accusers. Question is... should the one who is arrested and later found to not have committed the crime be compensated? You may readily say yes, but consider the following:
1. In some countries there is no such compensation
2. Some people think that to hold a person that seems likely to be a criminal is just cause
3. how does one compensate time lost?

Arrest Compensation

Good question, but at the moment, I don't have a clue how to respond. I think a lot of it would have to do with the circumstances of the arrest. For example, was a malicious false arrest, or was it a natural mistake?