In an effort to eliminate shady practices and clean up the industry, the Minnesota Commerce Department has issued new regulations for bail bond companies across the state.
As we explained in a previous blog, if a person doesn’t want to pay their full bond amount to get out of jail before trial, they can hire a bail bond company to post the full amount for them. A defendant typically has to pay roughly 10 percent of the original bail amount to the bond company, and that money is non-refundable even if the charges are dropped, but it’s an option for people who can’t afford to pay a large bond amount themselves.
Until recently, the bond industry was largely unregulated, even being likened to the “Wild West” in terms of ethical practices by Commerce Commissioner Mike Rothman. An investigation into the industry revealed that some bond agents were pressuring family members of defendants, unlicensed agents were receiving illegal kickbacks and fights were breaking out among bond companies on court property, sometimes disrupting legal proceedings. In one instance, bail bond agents descended on a police swearing in ceremony, mistakenly believing that excited family members were actually relatives of arrested individuals, and their attempts to solicit business made for an uncomfortable and disruptive ceremony.
It’s also imperative to work with a bail bond company who is local to you. For example, if you’re based in Dallas, then consider using a Dallas bail bonds specialist company.
“This enforcement action was necessary because too many people in the bail bond industry thought they were in the Wild West and the rules didn’t apply to them,” said Rothman. “Bail bonds are a type of insurance. As with any insurance business, the people in the bail bond business need to obey the laws that protect consumers and ensure a fair marketplace. This isn’t reality TV. It’s the real thing”
New Bail Regulations
Under the new set of guidelines, bail bond agencies are only allowed to charge the filed rates for bonds, eliminating some under-the-table kickback schemes, and they must follow detailed documenting procedures for all payments received and collateral held on behalf of customers. Insurance companies will also be required to conduct an annual audit of their bail bond agencies – similar to this bail bonds in Jacksonville, Florida – and their agents to ensure they are operating within state laws and regulations.
Additionally, bail bond agents and companies are prohibited from:
- Soliciting business on court or jailhouse property.
- Paying a fee or offering something of value to a jailer, police officer, judge or employee who sends business to a bail company.
- Paying money or giving something of value to a person who hires a bail company for their services.
- Paying commission or a finder’s fee to any unlicensed agent.
- Paying commission, money or anything of value to an inmate who refers business.
For more information on bail bonds, including an answer to the question “Can I get my bail money back,” click the links!
