What Does a Bail Bond Company Do?
Most people try to stay on the right side of the law. Unfortunately, there are times when people run afoul of it and end up in jail. Rather than stay in jail while they await their day in court, some people turn to bail bond companies to get them out of jail, at least temporarily.
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Identification
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A bail bond company is a business that provides a surety bond--a contract guarantee backed by an insurance company, collateral, or cash to the court in exchange for the release of a criminal defendant. This process is called "posting bond." After the posting of the bond, the defendant is freed from jail until his scheduled court hearing. However, he must show up or the bond company's money or property will be at risk.
Function
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Bail bond companies charge the defendant or the defendant's family a certain amount in order to post bond and help the defendant get out of jail. According to the California Department of Insurance, bond companies charge about 10 percent of the total amount of bail required by the court. The defendant does not get this money back, no matter what happens with her case, as this is the bond company's fee for its services.
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Considerations
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In some places, bail bond companies have a bit of competition from the local court system. According to the California Department of Insurance, some courts allow the defendant or his family to post 10 percent of the bond amount in cash. For a $5,000 bond, for example, the defendant would have to pay the court $500 in order to get out of jail. If the defendant does not violate the conditions of his bail, the court returns the $500 deposit at the end of the case. Since this amount is the same as the 10 percent most bail bond companies charge and there is a chance they'll get the money back later, some defendants and loved ones choose this route.
Warning
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In some cases, a defendant may have to give up far more than just a 10% fee. Sometimes bail bond companies require a defendant or her loved ones to offer collateral in addition to a 10% fee. This is typically the case when a large bail amount has been set by the court. For example, if the court sets bail at $150,000, the bail bond company may require the defendant to pay $15,000 and put his house up as collateral against the full sum.
Misconceptions
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It's a misconception that the bail bond process always goes smoothly for bond companies. Sometimes a defendant doesn't show up for court when he should. When this occurs, stipulations in the bond company's contract or provisions provided by the law allow the company to find the defendant and take him to court. Doing so allows the bond company to recover the money it paid out for the defendant or protect anything offered as a guarantee. Often, bail bond companies use the services of a bounty hunter to hunt down the defendant and physically take him to court.
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Resources
- Photo Credit Photo by lckidwell at sxc.hu
