How Do Bail Bonds Agencies Make Money?
When people are arrested for crimes, they are usually offered the opportunity to be released from jail until their trial date by paying a bail amount set by a judge. However, some defendants can not afford the full bail amount. This is where bail bonds agencies come in. How do these agencies make money?
How Bail Bonds Work
When a defendant works with a 24 hour bail bonds Allentown PA agency, the agency is essentially loaning the defendant money. The bail bonds agency pays the court the full amount of the defendant’s bail, which allows the defendant to get out of jail. When the defendant shows up for court, the court returns the bail amount to the bail agency. If the defendant does not show up for court, the court retains the bail amount.
How Bail Bonds Agencies Make Money
Most bail bonds agencies charge a percentage of the full bail amount as a fee. For example, if the full bail amount is $10,000 and the agency charges a 10% fee, the defendant must pay the agency $1,000 to secure the bond. If the defendant shows up for court, then the agency will receive the $10,000, less administrative fees, as a refund from the court and keeps the $1,000 that the defendant paid.
What Happens If the Defendant Doesn’t Show Up for Court
If the defendant doesn’t show up for court, then the agency loses the bail money it paid to the court. The agency may hire a bounty hunter to locate the defendant and return the defendant to jail. If the bounty hunter is successful, the agency may receive a refund of the bail amount paid to the court.
Bail bonds agencies take on a substantial risk when working with defendants. However, when the defendant shows up for court, the agency stands to make a profit and the defendant avoids a lengthy jail stay.