When you get arrested and turn to a bail bond agent for help with your release, do you realize that bail bonds are loans? Many people do not understand that a bail bond is a loan, but this is an essential detail to know and understand before you use these services. Here are several facts about bail bonds and the way they work to help you understand how a bail bond is a loan.
Bail Bond Agents Pay the Bail
When you hire a bail bond agent, the agent creates a binding contract with you. The agreement states that the agent agrees to pay your bail for you. This responsibility is the one duty the agent has. You, however, also take on duties. Your duties include paying the necessary fees and following all the orders of the agent and the court. When you sign the agreement with the agent, you are agreeing to comply with these orders in exchange for the agent paying your bail.
The agency will spend a lot of money getting you out of jail, and the agent takes on significant risks to do this for you.
You Pay a Fee for the Service
You are required to pay a fee for the service, but the amount of this fee is significantly less than the cash the agent pays to get you out of jail. The fee you pay is generally non-refundable, and it is the commission the agent earns from the ordeal. If you do everything right in your case, you will not get this fee back, but you will also not owe any more money for the loan you took with the agent.
You Lose the Fee and the Bail Amount if You Skip Out
To understand how this is a loan, you should consider the effects of what happens if you skip out on bail. Skipping out on bail means that you do not show up to your scheduled court hearings, and it may also mean that you break other rules of the agreement. If this happens, you will owe a large debt. The debt will equal the amount of the bail bond that the agent paid, and the agent will come looking for you to collect this money.
Hopefully, you understand how bail bonds work before you take one. If you have questions or need more information about them, contact a local bail bond agent today.
Unfortunately, personal finance is not a subject that is widely taught in schools. And yet, to be a functioning adult in society, you need to know the basics about earning money, saving money, taking out loans, paying interest, and so forth. Money makes the world go 'round, and you won't get very far in the world without a basic money education. There are many ways to learn more about money, from reading books to visiting a personal financial advisor. You can start by reading some of the articles on this blog, which address a wide range of financial topics for people in every situation.