How Bonding Companies Make Money
Cobb County Jail Bonds > How Bonding Companies Make Money
After you've hired a bondsman, have you ever wondered how these bonding companies make their money? Just how do they get paid? Which bonding companies make the most? Does the money get returned to the cosigner after the court case has ended? We will answer all of these questions in the next few paragraphs.
What is a Bonding Company Anyway and How Much Money Do They Charge?
A bonding agency operates in much the same way that a loan company does. In exchange for a fee, these companies front the money required for the full amount of a bond to get an inmate released from jail. Insurance companies underwrite these bonds so no actual cash is given to the actual jail at the time of the defendant's release. However, to be licensed bonding companies must have a lot of funds in an escrow account. The amount of money required in the account varies from state to state and county to county.
The bonding company's issuance of the bond requires a few things to be in place. First, the inmate must be eligible for a surety bond (traditional bail bond). Secondly, the cosigner on the bond must have proof of residency in the state of the inmate's incarceration. Thirdly, the cosigner must pay the bonding company their required fee of 10%-15% of the total amount of money due for the bond. Of course, the cosigner has the option to pay money directly to the jail, but they will end up paying the full amount and not just a percentage. By paying this percentage to the bondsman is how bonding companies make money. Bonding companies make money through service fees. Hiring bonding companies to write jail bonds for inmates is commonly accepted in society as a means to give a defendant a way to collect evidence on their behalf (to prove their innocence) and return to their daily responsibilities.
How a Bail Bondsman Earns an Income
Paying a bonding agency to get your friend or loved one released from jail is one way to secure their freedom. You can also give money to the jail for the bond’s full amount. Furthermore, you can also have the inmate wait it out in jail. Bond reduction hearings can be a great way to save some money in the long run. Granted, it is most likely that the defendant would have to spend a few more days in jail, but it just might be worth it if his/her bond is several thousands of dollars.
If the cosigner decides to move forward with the bond and start the jail release process, then all they have to do is call a local bonding office and give them the name of the inmate. The bondsman will lookup their information on the county's online inmate search portal to verify the bond amount and their eligibility for a surety bond. The cosigner then goes to that local bonding company with their proof identity and residency and pays for the bail bond. When defendants don't show up for court, then bondsmen lose money. If they do, then they profit. This is how bonding companies make money.