For awhile now, there has been a huge shift toward bail bonds companies offering not only payment plans, but little to no upfront down payments and interest. Much like other industries, such as law firms, doctor offices, etc, it is not difficult to have clients simply not afford their service unless the business is willing to take additional financial risks and offer flexible payment options. Smarter credit card users may realize once they factor in how much they would pay in residual interest, even credit card bonds have their downsides. While also becoming subject to credit card late fees, the payment options bail bonds companies offer start to look rather enticing.
Although in-house kiosk fees are only 7%, a decent amount less than the 10% to 15% bail agents must charge, it’s a fee needed to be paid in full; often an amount more than a defendant can afford. For small non-felony bonds this might not apply, but would the bail industry really prefer someone remain detained in jail for hours, sometimes overnight, so they can charge a $100 minimum fee? The answer is hopefully No.Connecticut Bail Bonds Group
Disguised Online Threat.
Perhaps these kiosks might affect small mom and pop businesses, but there is still plenty of time before this option is made available to all jails. A larger threat for small businesses is the relatively recent developments of bail bonds companies hiring aggressive search engine and social media marketing services. Driving into any city, one is not hard pressed to find a bail bonds company especially near jails and court buildings, so the industry appears to be doing rather well. For example, if just a handful of businesses within a city closed, largely it would go unnoticed and bail kiosks could hardly be described as a punishing blow to the industry.
With search engine trends showing an increase in bail bond related searches, we can expect throughout these next 5 years smaller businesses being driven out due to increasing online competition rather than to bail kiosks.
There is no shortage of literature describing how the recession has impacted the bail bonds industry negatively. This can be seen by the competitive payment plans offered, but the market itself is growing. The leaders of the industry routinely make 7 figures annually. The amount of individuals with a bail license writing bonds alone, vastly outweigh the number of companies with legitimate store-front offices, employees, website, etc. This is analogous to realtors; you can’t expect that everyone with a real estate license to compete with large realty companies much like every bail agent can’t expect to survive the economic and legislative fluctuations all businesses face.