Is restitution mandatory in US criminal cases?
For many federal crimes it is mandatory under the Mandatory Victims Restitution Act (18 U.S.C. 3663A), covering offences such as fraud and crimes of violence. Most states also authorize or require restitution. It compensates victims for actual, provable financial losses.
What losses does restitution cover?
Restitution covers actual out-of-pocket losses: the value of damaged or stolen property, medical and psychological care expenses, lost income, funeral costs in death cases, and expenses incurred participating in the investigation. It generally does not cover pain and suffering or punitive amounts.
How is restitution collected if the defendant is in prison?
Restitution can be collected through wage garnishment, tax refund interception, liens on property, and prison work programs (such as the federal Inmate Financial Responsibility Program). Unpaid restitution can remain enforceable for many years after release.
Does insurance affect my restitution?
Yes. Restitution is reduced by amounts the victim has already recovered, including insurance payments, to prevent double recovery. However, an insurer that paid a claim may itself be entitled to restitution through subrogation in some jurisdictions.