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?

In the world of bail bonds, unemployment as well as lost credit and housing devaluation has made it increasingly difficult for people to bail out their family members, loved ones and friends. It used to be a lot easier to put up the 10% or $2,000 for a $20,000 bail bond on a credit card when you had a larger limit to draw from.

The San Bernardino County Sheriff’s Department stated ”There definitely have been more cite releases in the last couple of years… We are under a court order to stay just below maximum capacity to help alleviate the overcrowding situation.” For those who are “cited out” or “cite released,” the court has entrusted the defendant with the duty of showing up on their own for court dates, in lieu of being held in jail or being bailed out. 

Unfortunately, this doesn’t nesessarily mean there are less of those out there on the streets committing crimes. There’s no guarantee the offenders will show up for court as promised. Then we’re back to where we started all over again: overcrowded jails,  more cite outs and more people being re-arrested.

By simply having a bail bondsman involved in the process, it can help to put an end to this vicious cycle. Bail companies provide the public a much needed service. Definitely something for the penal system to think about, before approving more cite out releases.

Sheriff’s officials were hoping to get enough people to sign up for the next class of correctional services assistants, said spokesman John McDonald, but the rate that they got them: “Surprised a lot of us here.” The class, which only has 50 seats, educates civilian employees in how to assist sworn personnel at the jails.

The pay scale for these new jobs ranges from $37,211 a year during training to $56,992 maximum, including county health and pension benefits.  The department wants to train enough civilian workers to eventually make up 35% of their jail staff, which will save the financially beleaguered county about $10 million a year.

This was the first class open to all applicants. The department’s initial class of 23 men and women was drawn from internal candidates who graduated in December. The Sheriff’s Department says it will reopen applications in the near future for the next class.

A  UC Regents board meeting was interrupted by approximately 500 students during a peaceful demonstration where banners were held high as students chanted, “cut from the top!”

The California Board of Regents went ahead by approving the two-step fee hike. This hike also effects graduate students at professional schools. Mark Yudof, UC President stated, he “can’t make any promises” not to raise fees again if the state doesn’t come through with more money.  He apologized stating, “when you have no choice, you have not choice.”

During the past two days of demonstrations, riot police have been on hand to make sure the demonstrations remain calm. With California in a deficit of $21 billion, it’s too bad education funding is one of the first things to get cut.

these days, too many clients are asking for bail without the required collateral, such as a home or a car, diminishing bail bondsmen’s customer base. And not helping matters is a new policy by Marion County judges setting less expensive cash bonds for minor offenses…

Couple the economic situation with other “solutions” being offered in terms of bail. I hear talk of temporily lowering the bail schedule to allow more people in California to post bail. Huh? The bail schedule is set by judges based on public safety and flight risk. Lower it?  

Add to this jail overcrowding causing manditory releases, out of control pre-trial release (known as release on ”own recognizance” which is intended for the indigent) and so-called “cash bail” on your credit card. 

“We wanted to make sure we are not setting our bonds so high that we are overcrowding our jail,” said Marion Superior Court Judge Robert Altice Jr. of Indiana. How about public safety?

Last December, I spoke with Tony Castro of the Los Angeles Daily News. He asked me how the bail business has changed in the downturned economy. My answer today would be much the same as then: people still need bail bonds. However, the willingness to pay $1000 or $5000 is definately restricted. In better economic times, people had jobs that they needed to go to, so they would bail out. In better economic times, spending money is easier.

All that said, is the bail industry going under? Well, I can only speak for this company and say, not yet! Treading water at times, maybe, but not going under. As an industry, however, bail agents need to stay aware of the climate. Bail is a right and bondsmen help maintain the system that is free to the taxpayers.

I know most people have never had first hand experience with bail bonds. Apparently, the common school of thought is that crime goes up in an economic down-turn.

Last December, I took a call from Tony Castro at the Los Angeles Daily News. He asked several questions about the economy and bail bonds. Mr. Castro subsequently wrote an article about Van Nuys bail bondsmen “bailing out”. I spoke with Mr. Castro a fair amount of time and even though he quoted me on a couple of points, there were several issues I discussed that were left out. Since then, I keep feeling there’s so much more to be said. So, today I’ve written a follow-up article about bail, crime  and the economy. In this article, I’ve attempted to answer:

1. Is the bail industry recession-proof?
2. As the economy sinks, is crime rising?
3. Are foreclosures and layoffs driving people to a life of crime?
4. How bad is it?
5. Is it getting better?

Photocredit: ©  Norman Chan- Fotolia.com

It used to be when you Googled “bail out” you’d find your local bondsman. Now, that search gives you the same Google Ads for bail bonds, but all of the search results refer to the economic situation.

Today’s Los Angeles Daily News, however, managed to combine the two with Tony Castro’s story: Bondsmen Are Starting to Bail Out. Don’t let the newspaper’s picture and the headline fool you. The only bailing out that Greg Rynerson Bail Bonds is doing is bailing people out of jail.

While it hadn’t occurred to me, I was recently asked if our business was recession proof. Honestly, I don’t think any business is immune to the effects of the economy. Yes, in bail bonds, people continue to have a need regardless of the economy, but the ability to pay, and more over, the willingness to pay is impacted. We offer payment plans where it’s appropriate and perhaps more people this year have needed them.

Photocredit: John McCoy /Daily News Staff Photographer/Dec. 03, 2008