DFS, Cuomo Propose New Regulations for Bail Bond Industry
The changes are intended to improve transparency in the bail bond industry for consumers and remove fees that go above the allowed costs under state law.
August 21, 2018 at 04:07 PM
4 minute read
The state is proposing new regulations for the bail bond industry aimed at curbing practices that may be especially harmful to low-income defendants, Gov. Andrew Cuomo and the state Department of Financial Services said Tuesday.
The changes are intended to improve transparency in the bail bond industry for consumers and remove fees that go above the allowed costs under state law.
Cuomo said in a statement that the proposed changes will help crack down on “predatory practices” in the industry.
“These reforms are critical in our efforts to crack down on predatory practices in the bail bond industry and protect New Yorkers from unscrupulous activity and ensure that everyone, regardless of economic status, is provided fair and equal treatment under the law,” Cuomo said.
The New York State Bail Bondsman Association said it is being drawn as “predators” based on a few individuals that operate either unethically or outside of the state's regulations.
“We're being portrayed as these evil, kind of greedy, cigar-smoking predators,” said Michelle Esquenazi, president of the association. “It's just unfair.”
Esquenazi said it's too early for the association to take a position on the proposed regulations. The state provides a 60-day comment period before a rule is finalized. That's after a series of listening sessions on the issue earlier this year. The DFS also has an ongoing investigation into the industry.
One reform born from that feedback is a limit on extra fees that a bondsman can charge on top of premiums set by statute and other costs imposed by a court. The regulation seeks to ban bondsman from seeking any additional payment. Esquenazi said that ignores the realities of the industry.
“The fact of the matter is there are other costs associated from time to time with the deliverance of paperwork and things like that,” Esquenazi said. “If the system was more modernized like in other states, we wouldn't have to have that.”
Bail bondsmen have not asked the state to raise the premium amount, though Esquenazi noted that New York has one of the lowest premium rates in the country.
Other parts of the regulation address transparency and accountability in the bail bond industry.
The DFS will have to approve all bail bond contracts and forms used by agents, for example. Agents will also have to give consumers a disclosure that outlines their rights, and the responsibilities of the agent. Agents will also have to give consumers receipts and copies of any documents used during a transaction.
If a situation arises where a bail agent surrenders a defendant to the court and asks to cancel a bond, they will have to explain their reasons to the court and the defendant in writing. The regulation will also mandate a timely return of any collateral and premium where appropriate.
The regulation will require closer supervision from surety companies for agents, who will have to improve their record keeping and reporting. They will also have to post their licenses and display signs on how to report a complaint against them.
The proposal will be promulgated by the DFS because it changes the state's insurance regulations.
“DFS is proud to support the governor's initiatives to protect New Yorkers from abuses in the bail industry by promulgating this new proposed regulation,” said DFS Superintendent Maria Vullo. “We will not allow bail agents to take advantage of New Yorkers who are often at their most vulnerable.”
Esquenazi said, if given the opportunity, the association will sit down with the DFS over the next two months to explain how the changes will affect the industry. They want to work with the state to improve the bail system, but also want to protect the industry from regulations that may impact their business.
“If what ends up happening is that everything is cohesive, we're very happy to work with the state on every level,” Esquenazi said. “We, as an association, support good bail agents in the state of New York.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAttorneys 'On the Move': Structured Finance Attorney Joins Hunton Andrews Kurth; Foley Adds IP Partner
4 minute readNY Civil Liberties Legal Director Stepping Down After Lengthy Tenure
Former Top Aide to NYC Mayor Is Charged With Bribery Conspiracy
Trending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250