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Do you know how badly COVID-19 has affected the stock market? It almost broke the bond market. When the bond market broke, it was like the economy cannot breathe anymore. US Bail bond business is the backbone of the USA economy.
Before understanding the downfall of the US bond business, it’s also necessary to know “How the Bail Bond Industry Became a $2 Billion Business, according to Global Citizen.”
The US bail system follows a strict policy. However, it is the worst thing if your loved ones get arrested and are in jail. For instance, if you are at California’s Rancho Cucamonga and got arrested by the cops, then what you should do next. Just stay calm and let the professional agents at bail bonds Rancho Cucamonga help you post bail.
What is Bail Bond?
A bail bond is a surety bond provided by a bail agent to ensure that the defendant gets released from jail. There are two types of Bail bonds.
Criminal Bail Bond: This agreement provides guarantees that the accused person will be present for trial when called by the court and will pay the fines or penalties as decided by the court against the accused person.
Civil Bail Bond: This means a bond used in civil cases to secure the release of an accused person and guarantees the payment of the debt, plus interest and costs.
Reasons why US bail bond Business was in Danger:
Already US Bail Bond business was on the sink, but suddenly Covid 19 waves have shaken the entire business. Prisons and jails are at significant risk due to the Coronavirus outbreak which hampered living, eating, and bathing in shared spaces. This situation added intensity to a decade’s long debate on one of the biggest causes of jail density — a system that accounts for a $2 billion industry in the U.S. That system is money bail.
Over 100,000 U.S. prisoners tested positive during the Covid-19 pandemic. To reduce the spread 50,000 prisoners were released from incarceration throughout the pandemic.
Many bail bonds companies had to lay off their entire staff as there are no bonds to post. Also, most of the criminal justice system is shut down right now due to the pandemic.
The ugly truth of Bail Bond Business:
How much do you think you need to pay? In many cities and towns, law enforcement uses predatory fines and fees to criminalize people to extract business out of it. The bail bond industry links the criminal process even more tightly to the financial industry, exploiting families. The commercial bond market is one of the world’s profit bail systems that have grown over time into an industry worth $14 billion.
Bail is about big business. $14 billion in bonds are issued across the country each year, about $2 billion in profit for bail bond companies are making each year. Now you may know bail involves a lot of money and financial risks. Now you get a glance at the USA’s bail bond business and the reason behind its crash. Noticed with no bonds to post, many bail bond companies in Rancho Cucamonga in California have had to lay off their entire staff during Covid 19 pandemic.