Do Bail Bond Companies Loan Money?

Here is another Resolved Question from Yahoo! Answers, where we often answer to many bail related questions and concerns.  Our answer was chosen as “Best Answer” by voters.

Question:  Do bail bond companies lend money if a person is not in jail?

Answer:   This is a very good question and one we get often as bail bondsmen. Bail bondsmen do not make loans; they should be thought of more like an insurance company although the risk analysis on bail can be very similar to that of a loan. You are basically buying an insurance policy that will ensure the defendants appearance  in court.  This is an agreement and risk that the bail bondsman takes along with the “co-signer” of the bail bond contract.

The bondsman fee is not interest, though often confused for that since the fee is a percentage. The bondsman is giving the court a paper contractual agreement and not money.

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