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Cash Bail vs. Commercial Surety Bonds: The Key Differences
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Cash Bail vs. Commercial Surety Bonds: The Key Differences
When someone gets arrested, the court may allow them to post bail so they can be released while their case moves through the system. Bail is basically a promise that the defendant will return for their court dates. There are two main types of bail: cash bail and commercial surety bonds.
Cash bail means the defendant or their family/friends pay the full bail amount set by the judge directly to the court in cash. With commercial surety bonds, the defendant pays a bail bonds company typically 10% of the total bail amount as a non-refundable fee, and the company promises to pay the full bail if the defendant doesn’t show up.
There are some key differences between these options that are important to understand:
Financial Risk
With cash bail, the defendant or whoever posts the bail takes on all the financial risk. If the defendant misses court or violates release conditions, the court can keep the full cash amount. The money is gone, and there’s no getting it back.
With commercial bonds, the bail bonds company takes on the financial risk instead. The defendant only loses the 10% fee they paid upfront if they fail to appear. So there’s less money at stake for the defendant.
Getting the Money Back
If everything goes smoothly with the case and the defendant makes all their court dates, the full cash bail amount gets returned at the end of the case (minus any court fees). So posting a cash bail is like an interest-free loan to the court system.
With commercial bonds, the defendant doesn’t get back the 10% fee they paid the bail company no matter what. So some money is lost even if the case goes perfectly.
Arrest Power
Bail bonds companies can arrest defendants who miss court dates and bring them back to jail. This helps ensure people show up. The court has no power to arrest defendants out on cash bail who go missing.
So while the court takes less financial risk with cash bail, bondsmen have more incentive to track down missing defendants.
Upfront Costs
Coming up with the full cash bail amount can be difficult for many families. Even if the bail is $1,000 total, that may be tough to pull together quickly.
Putting up just 10% with a bail company is more feasible for some. So commercial bail opens release to more people who couldn’t afford the full cash amount.
Eligibility
Not everyone qualifies for commercial bail bonds. Companies screen applicants and may turn down high-risk defendants more likely to miss court. With cash bail, anyone can pay the money and secure a release.
Jail Time
It often takes longer for family and friends to scrape together cash bail funds to get someone out. This means more time behind bars waiting for the money.
Bail companies can usually post bond right away, resulting in faster release in many cases.
Industry Regulation
The commercial bail industry faces more regulation and oversight than cash bail. Bail agents must be licensed and undergo training. They also can’t charge more than legally allowed rates.
No regulations restrict who can pay cash bail or how much the courts can impose. Some critics argue cash bail essentially functions as an unregulated industry.
Public Costs
When people stay stuck in jail because they can’t afford cash bail, taxpayers foot the bill for housing, food, medical care and other jail costs. This drives up public expenditures.
Since commercial bail springs more people from jail, it may reduce these public jail costs. But there are also calls to better regulate bail companies to limit other societal costs.
Racial Disparities
A 2019 study found cash bail contributes to racial disparities in pretrial detention. African American and Latino defendants have lower incomes on average and often face higher bail amounts they can’t afford.
Commercial bonds may help narrow these racial gaps by making bail accessible to more disadvantaged groups. But more research is needed into the impacts of both systems.
The Ongoing Debate
There are good arguments on both sides. Cash bail gives the courts financial security while allowing anyone to bail out a defendant. Commercial bail opens release to more people, limits individual costs and may reduce jail populations.
In the end, the choice between cash bail vs. bonds comes down to an individual’s financial situation and the tradeoffs they’re willing to make. The debate between the two systems seems poised to continue as reform efforts challenge cash bail and call for more accountability from the commercial sector.