Trends and Developments in the Bail Bond Enterprise
Learn more about how bail bonds firms work, and recent industry trends.
Is the bail bond enterprise lucrative? The business can be rewarding. It can also turnout as a bust if you do not take care of things at the very start. Study the prospects carefully if you plan to put up this type of business. You must also be familiar with the state’s bail bond system to thrive in this industry.
A bail bond enterprise operates like an insurance firm. It pays the entire amount of bail while defendant-clients only shell out 10 percent. Or, it offers financing options for that small fraction with higher interest. Defendants never get that percent age back once the case is resolved. One condition is defendants must be present during hearings. Otherwise, the bond is not returned by the court. In this case, the bail bond agency resorts to the use of bounty hunters in bringing back the accused to jail.
- Industry stakeholders confirmed bail bond enterprises earned more than $2-B in revenues during the past few years. It has gained the support of over 30 major insurance firms that finance these businesses.
- Needless to say, a market research report from IBIS World revealed this industry grew steadily although regulation could slow down profitability and affect revenue margins. Even then, aggregated income is still expected to rise at a slower rate compared to the previous period. A bail bond enterprise enjoys a constant stream of clients because of the US criminal justice system’s composition.
- Amounts of bail bonds continue to increase. According to available statistics from the Justice Policy institute (The Bail Bond Industry is for Profit, But Not for Good – September 18, 2012), average bail amount was more than twice as much between 1992 and 2006. From $25,400 it went up to $55,500 which surpassed inflation figures during that period.
- Commercial bail bonding can pave the way for dishonesty in the pre-trial stage that includes arrest (police custody); booking; posting of bail; arraignment; plea bargain; and, preliminary hearing. Bail bondsmen totally control the defendant’s liberty which can lead to cases of exploitation and bribery.
- At present, there are models for pre-trial services in several states such as Louisiana, Kentucky and Oregon. These have proven to be successful pre-trial release platforms that make use of meticulous and confirmed risk assessment as well as monitor released litigants. Four states have already disallowed business bail bonding and implemented risk-based programs for pre-trial.
Future of Bail Bond Enterprises
Where does the bail bond enterprise go from this point? Many people believe commercial bail bond benefits the majority with limited incomes since the bond company answers for 90% of the bail cost. The implication is you need not stay in jail while waiting for court hearings. Bail amounts become exorbitant and only the wealthy can afford to post bail. The only solution is for the impoverished to look for bail bond enterprises.
Commercial bail bond is definitely needed. However, there should be more transparency and fairness in this industry for the best advantage of society.