As bondsmen, we’ve already been fighting a singular economic battle for some time, because we can’t compete based on price — we’re regulated by the Department of Insurance and are rates are set with them. In addition, our customers may not be very particular:  They often just want to deal with whoever can help them the fastest.

It used to be that good, honest service was the benchmark of a successful bail bond business.  Call me old fashioned, but I still believe this to be true and I really get steamed when I find myself up against bondsmen who break the law to earn a buck – and who then use bad economic times as their excuse.  So I’d like to dispel the belief that their practices have anything to do with a lousy economy.  I want to do this because I am extremely concerned about a growing trend that threatens to tear apart our industry…

Let’s take the example of a defendant who has been arrested. While his information is being entered into various jail computer databases during booking, unscrupulous bail bondsmen actually “hack” into these databases to get his name.  Sometimes, this happens within minutes of a booking.  Once these hackers have illegally got the defendant’s name, jail location and DOB, they start to gather information about friends and family – anyone whose emotions this bail bond blood sucker can potentially manipulate to his advantage.  Then they cold call these people for the purposes of negotiating bail. It’s bad enough that the defendant committed a crime; it’s even worse when he is being exploited by another who will get away, Scott free, with breaking the law.

Never before have we faced a period in our society, where our right to privacy has been invaded and compromised with such alarming frequency.  Now even those loosely connected to the defendant like current or former bosses, ex-spouses or estranged family members can get wind about an arrest in this callous manner.  Besides the obvious embarrassment, work and personal relationships could be irrevocably damaged.  I continue to ask myself:  In what way, shape, or form could a bad economy possibly have influenced this?

In some cases, corrupt bail bondsmen even had the stones to illegally visit a defendant in jail (usually within 1-2 hours of the arrest). They are masters of knowing just what buttons they can push when negotiating bail with a stressed, frightened or angry defendant.  They will mine him for all his important contact phone numbers and make it seem like it was his idea to give them out.  They also sweeten the deal by offering illegal, low bail premium rates. This practice not only undercuts the normal market forces, it puts both the defendant, who is already in trouble, and his innocent connections, in danger of breaking the law.

In California, where more bail bond business is conducted than any other state in the nation, the scenes I’ve described to you are happening on a massive scale.  I often end up scratching my head in bewilderment:  Who is actually letting these thieves inside the jails? Are certain officers being bribed?  Are there inmates who get a cut from the scammer bail agent’s take if they intimidate other arrestees into signing with a particular bail bond service?  And just how are they gaining computer access to booking information, mere minutes after the defendant has been booked, anyway?

I have been told by many clients that they were called by a bondsman who wasn’t contacted by anyone in their family, nor by friends or the defendant. When the client asked the caller where he got their contact information, they were almost always told: online.

Here is the only economic-related news for you:  These unscrupulous bondsmen must be engaged in an operation that involves, at minimum, hundreds of thousands of dollars in insurance premiums per day.  In my opinion, it won’t be long until legitimate retail bail companies, undercut and hurt by these illegal tactics, go the way of the dinosaur. Taking their place will be a large network of criminal computer hackers and illegal solicitors that can ultimately crack every database in California.  Our reputation will be utterly ruined, and the negative Bail Agent stereotype of a shady parasite that is perceived to be one step below the criminal he claims to help, will be reinforced.

One of my readers reminded me of another scam going on that also deserves some attention:  lawyer referrals and kickbacks – a practice that violates both state and federal law. This practice is also known as capping.  It’s when bail bond agents who have been illegally referred to defendants by their attorneys make “cold calls” on inmates. The agents deposit money in the lawyer’s accounts in return for these referrals – or they give money to the inmates’ families or act as a conduit for free long-distance telephone calls.

A popular myth says when the economy goes down, crime goes up.  And when crime rises, bail bond bondsmen grow rich.  But this is not true.  Remember, we too, are sellers of what some might deem to be a luxury item. Families experience a lot of stress when a loved one is in jail. It’s a trying, emotional time; and this leaves them vulnerable to a number of bail bond scams. If a bail agent doesn’t follow the law, whether economic times are good or bad, how can you trust them to treat clients fairly in the end?

If your friend or family member is arrested, they could be stuck in jail for days, even weeks.  Posting bail is a fast, easy way to get them released until they must return to court.

You may already know that a bail bondsman is the person who goes to the jail to secure that release with a bond.  But do you actually know what a bail bond is and how it works?

A Bail Bond Is…

A bail bond is a paper document, much like a bank check, that is recognized by our courts.  People should not write checks unless they have provided enough money in their bank account to cover them.  A bail bondsman also makes a monetary promise that says: I guarantee the defendant will appear in court whenever a judge requires, on a specific date and time, or I will cover the entire amount of his bail.

Responsibilities When Co-Signing

But this promise is too risky for a bail bondsman to make alone, so they only post bonds after a defendant, friend or family member contacts the bondsman and agrees to become the bond’s co-signer, or “Indemnitor.”   By signing a bail bond contract, Indemnitors also guarantee to help find the defendant if court is missed or pay the full amount of the bail, if the individual cannot be found.

An Indemnitor has to be in a position to offer a bail bondsman something in return if the defendant misses court.  The bondsman considers the character of his co-signer up, making a calculated judgment call based on his experience.  He often asks potential Indemnitors if they have a job and for how long.  Do they have good credit? Are they homeowners? Etc. Etc.  The questions a bondsman asks help him determine whether or not they are the kind of stable, trustworthy people he is willing to write a bond for.  In addition, an Indemnitor’s involvement encourages the defendant to remain committed to his part of the bargain.  Let’s face it, who wants to stiff someone they care about, that helped get them out of jail?

Bondsman Responsibilities

The minute a defendant is released, the jail no longer has authority over him.  He is now considered to be the property, or “chattel“, of the bail bondsman.  This rule dates back to 13th century England, where the custom of bail first started, but today it simply means the bail bondsman has legal authority over the defendant.  His freedom is guaranteed — unless the bondsman revokes it for breaking the law or their bail contract.  If the defendant bolts, the bondsman can also hire a bounty hunter to re-arrest him.

Bail Forfeiture

If the defendant misses his court date(s), it’s called a “forfeiture.”  Using our check analogy, the bail becomes a “bad check” that needs to be covered.  And it’s the bail bondsman who is responsible for it, in full, to the court.  Fortunately, he has the Indemnitor who co-signed the bail bond, to collect that payment from.  And to further hedge his bets, when he deems it necessary, our bail bondsman has already gotten the Indemnitors commitment of collateral (like property) and a premium payment (10% of the bail amount).

But where does a bondsman get the cash he needs to cover an entire bail amount, which can sometimes be hundreds of thousands of dollars? Bail bondsmen contract with specialized insurance companies called sureties that underwrite bonds.  So not only are bail bonds like checks, they’re an awful lot like insurance policies, too.  If neither the Indemnitor nor the bail bondsman can pay the full bail amount, the court holds the insurance company responsible.

Bail Exoneration

But when a defendant keeps his court dates, the bond is “exonerated” or completed.  The bondsman returns all of the Indemnitor’s money and/or property, except his 10% cost-of-service fee.

Put Us On Speed-dial

In conclusion, a simple way to remember how bail works is with this little saying:  You don’t  have time to waste in jail, so get a bondsman to post your bail.  He’s the man with the can opener!

Oh, and you may also want to keep this number handy: 888-Bail-Bond (1-888-224-5266). It’s the phone number of Greg Rynerson Bail Bonds — my agency.  Because… well, you never know…

Here are four ways to know if the bail bonds companies you are filtering through might be considered unethical or untrustworthy.

1. Undercutting Bail Premiums AKA Illegal Discounts: You’ve narrowed your search for a bondsman online. So you start calling to interview to see which one fits best . The first one you call sounds okay, but when you get to the point of discussing premium (the fee for the bond), they start mentioning discounts that no other bondsman will give you. Suggestion? Tell them, “Thank you for your time, I will get back to you.” Why are you hanging up on this bail bonds company? One word: “discount.” In most states, it is required by law to charge a 10% premium for bail. So if the bondsman is suggesting a discount in order to do business with you, they’re shady, unethical, and you would benefit to part ways with them. Most of the time this discount is the result of a “bait and switch” strategy by the bail bonds company. They get you in there with the “5% bail bonds” advertisement and you find out that its actually %10. The 5% is only for a down payment and the rest is financed with the bail bonds company. If the bondsman is really offering you 5% premium, he’s undercutting bail – which is illegal. The majority of ethical bail bonds companies out there will be very up front with you AND offer financing at any time, usually without interest.
2. Do Your Homework: The Better Business Bureau’s (BBB) website. If the company is reputable, they will actually have the BBB link on their site and usually on the first page. Companies that go the length to advertise this type of qualification on the first page of their site are not hiding anything. Which means they are usually a well run company and strive for customer service. On the BBB’s site you can quickly find out about any complaints that have been reported. You will not find “reviews” or “recommendations”; this is not the purpose of the BBB site. Its only purpose is to provide a place to qualify trust for working with a company. Reviews and recommendations can be found on popular sites like Yelp and Merchant Circle.
3. Soliciting Bail at the Jail: If you happen to visit the jail and are approached by a bail bondsman, tell them you don’t need their help. Laws prohibit a bondsman from hanging around the jails  to solicit business. Even if the bail bondsman “happened” to be in the area posting bail for another client, soliciting your business is prohibited by law. So if you happen to be confronted by the bail bondsman while visiting your loved one, politely tell them to get lost. You really don’t want to be associated with them anyway, since in essence, they are breaking the law.
4. Soliciting Bail By Phone: Your phone rings. You are surprised to hear on the other line, “Hi, this is Johnny of Marciano Bail Bonds. I was calling to see if I might help you with the detainee, Mark so-and-so?” My best suggestion if this happens is hang up. Why? This is likely another bondsman breaking the law. It’s illegal for a bail bondsman to “cold call” potential clients for the purpose of soliciting business. Likely, someone has gained unauthorized and illegal access to jail records and has looked you up via online investigative techniques. The law states that all bail bond agents must first be contacted by the proposed client, therefore if you get a call from an agent, and you haven’t even contacted any agents yet, hang up!

In the end, after you’ve qualified the company and it passes these Four Standards, trust your gut. Good luck!

Photocredit: © Lisa F. Young – Fotolia.com

We know when someone calls and starts with those questions, we probably aren’t going to write the bond. How do we know? We know because the legal bail rates in California are clear. The people we deal with for bail are concerned with our professionalism and how quickly and efficiently we can get their situation settled. They aren’t looking to do business illegally.

So why do people who need bail call with such questions? One word: “Undercutting.” This is the term used for the practice of offering illegally low rates on bail. It’s a major problem in California and particularly so in Orange County and Los Angeles County. This week the Connecticut Law Tribune, reported similar situations in that state in their article “Paying a Price for Dishonest Bail Bondsmen”

While undercutting helps bail bondsmen gain a competitive advantage, it also lets people arrested for dangerous crimes out on the street for relatively little money.

“If the public knew half of what is going on, they’d be appalled,” said Mary Anne Casey, proprietor of Casey Bail Bonds in Hartford and senior vice president of a trade group called the Professional Bail Agents of the United States. “It’s a real public safety issue that needs to be addressed.”

The article goes on to explain extreme cases where hardened criminals were returned to the streets at a discount. Clearly, that is a problem. But the problem goes beyond that. The bail system is in place because it works. Bondsmen provide additional oversight for the defendant as does the indemnitor (the person getting the defendant out). If a bondsman is acting illegally, how could anyone reasonably expect the agent to ensure the defendants return to court?

I will say that indemnitors may not realize that getting a “bargain bond” is illegal. As bail bondsmen, we need to do a beter job of making the public, politicians, courts and police chiefs aware of the safety issues involved in bail undercutting.

Photocredit: © khz- Fotolia.com

When people hear that you’re a bail bondsman, they are always curious about the business. Last month, I blogged about what exactly is a bail bond. Once people understand that a bail bond is an insurance product, the next most obvious question is, “How is the underwriting of a bail bond different than the underwriting for typical insurance?” Comparing to an insurance you may have shopped for is probably the best way to understand the differences.

Let’s say, for example, you need fire insurance for your home, you might go to a fire insurance agent and apply. In most cases, your fire insurance agent will ask you questions such as, “What is the property worth?” or “Have you filed any previous claims?” or “Is your roof made of wood-shake or tile?” The premium you are charged on a fire insurance policy is simply a function of several standardized questions. The fire insurance agent simply puts this information into a computer / rate chart and out pops your premium. The fire insurance agent has extremely little flexibility in what they can ask. Furthermore, the customer could verbalize directly to the fire insurance salesman that they are a “three time convicted arsonist”. If arson is not a “filed” criteria with the determining insurance regulatory agency (and it probably isn’t), then a three time convicted arsonist may likely pay the same premium as an otherwise law abiding citizen who has the same history. Go figure.

However, a surety bond or bail bond is much different from typical insurance. Risk analysis and premium calculation are signficantly different in bail. A bail agent can use all available information to make an informed underwriting decision. A bail agent can ask whatever they like. They can use their intuition. Does the applicant seem trustworthy? Do they seem to be telling the truth? How long has the applicant been at their current job? Do they have kids that live in the area? What kind of work do they do? A bondsman can check the applicant’s credit history. Bondsmen can do all sorts of other seemingly arbitrary background checks. Furthermore, a bail agent can get a bad “gut feeling” and simply say, “I’m sorry Mr. Bail Applicant—we can’t help you.” If a fire insurance agent rejected fire insurance on a similar “gut feeling”, it would likely be illegal due to various “discrimination” laws.

Another major difference between a bail bond and other insurance is who is ultimately financially responsible. Again, let’s take a fire insurance policy: you pay your premium for the policy and in the unfortunate event you have a fire, you pay a deductible and the insurance company covers any additional loss. Contrast that with a bail bond. You pay your premium (10% of the full bond amount). In the unlikely event that the defendant doesn’t appear in court and cannot be located, you as the principal are responsible to pay the full bail amount to the court. If you cannot pay, the bondsman will. And, in the event that the bail bondsman cannot pay, his surety (an insurance company) would pay the court.

It’s really no wonder people have so many questions about bail. Besides the fact that so many people I talk to have never needed a bondsman, there really are a lot of details when it is such a simple process.

Photo Credit: © Irene Teesalu – Fotolia.com