Bail Bond Ethics

AIA Surety, the nation’s leading bail bond surety company, recently released the results of a survey of it’s agents. One question stood out for me. It said “What is the biggest challenge facing bail agents today?” Fifty-five percent of those responding said that unethical competitors presented the biggest challenge.

Interestingly, several recent news stories support this belief. Earlier this month, a Louisiana Bail Agent was arrested and charged with insurance fraud and felony theft. He was accepting premium payments on bonds and not submitting documentation in support of the bonds. He kept the money for himself and there was no record of the bonds being written.

In California, bail agents are reported to have paid kick-backs to jail inmates for referring other inmates to their bail agencies. Inmates in the booking area of the Orange County Jail were reported to be dominating the phone, offering to arrange bail with a specific agency in order to receive a kick-back and not letting anyone else use the phone. Referral fees of this nature are clearly illegal and authorities are conducting an investigation. However, finding the necessary evidence has be difficult.

In Texas, a bail agency has declared bankruptcy and is refusing to refund money that is due it’s clients. The clients completed their court appearances and are seeking refunds that are due them. However, the bail agency has filed for Chapter 11 reorganization and nothing is being repaid. The owner says that they will have to wait for a court order before refunding any money. In the meantime, the bail agent is reported to be doing business under another company name.

These three examples occurred this month. Clearly, unethical competitors are a problem and the person seeking to bail someone out of jail needs to exercise a “buyer beware” mentality. I would offer the following tips when selecting a bail agent.

Evaluate how you are treated on the phone. Is the agent pleasant? Easy to talk to? Does he seek to understand your situation and answer all of you questions? If you are not treated well before you pay him your money, imagine how you will be treated after he has it.

Bail Bond transactions require documentation. Everything must be put in writing and you should receive copies of all documents. You should expect to see an application, indemnity agreement, disclosure statement, collateral receipt and premium receipt. Failure to provide copies of these documents should be a red flag that something is wrong.

You get what you pay for. The better bail agents provide a higher level of professional service and expect to be compensated accordingly, within the limits of the law. They are in business for the long run and understand the costs involved in running a successful operation. Beware of the bargain basement price as you may be dealing with someone who is cutting corners that you cannot see. It may cost you more in the long run.