Bail bond industry battling slump in business

Crime doesn’t pay like it used to — at least not for the bail bond industry.

Dozens of bail agents are
closing up shop as part of a national trend that has seen many hurting for business.

Agents blame the economy and,
in Marion County, new bond policies for those charged with minor offenses.

"I am just trying to hang on,"
said Mark Thompson, owner of Hollywood Bonding, where business is down about 60 percent. "I am going week-to-week these
days. But it’s just not worth it anymore."

Bail agents are independent contractors backed by surety companies
who post bonds for defendants, allowing them to get out of jail while awaiting trial. Their business thrives as long as a
steady stream of criminal defendants seeks bond insurance, which typically costs 10 percent of the bond amount and requires
collateral such as a house or car.

Crime usually goes up with when jobs disappear, and so does the bail bond business.
But more clients are asking for bail without the required collateral, and a new Marion County policy sets lower cash bonds
for minor offenses and lets the bonds be paid directly to the court, with no collateral necessary.

That’s been
a blow to the bond business.

"In the past, when things went bad, bail bonds were always OK because people
still got arrested," said bail agent Kate Sweeney, 38, of Indiana Bail Bonds. "But with this latest crash, things
sort of tanked."

Sweeney says she’s decided to get out of the business. She’s not alone.

Indiana
has 383 licensed bail and recovery agents. About a third have until Oct. 31 to renew their licenses, according to the Indiana
Department of Insurance, but already 40 have sent notice that they will not be renewing.

Leslie Sebring, owner
of AAA Bailbonds for 44 years, says he’s sticking with it.

He acknowledges that Marion County’s shift, which has
prompted an increase in cash bonds, has affected business. But he plans to survive with his other business, United Surety
Agents, an umbrella insurer for more than 230 bail agents in 26 other states.

"We are writing fewer bonds,"
he said, "but they are higher bonds."

Marion County judges say the county’s new policy helps hold down
jail crowding and note that it’s difficult for unemployed criminal defendants to afford conventional surety bonds.

"Some people can’t even afford a thousand-dollar bond," said Marion Superior Court Judge Robert Altice Jr.

Altice said defendants can use their cash bond refunds to hire a private attorney rather than rely on a public defender.

"Anything we can do to lessen the workload for our public defenders is a good thing," Altice said.