"For years, Bad Boys preyed on people at their most vulnerable, burying them in debt they never knowingly agreed to. The precedent set in this case will help protect countless families across California."
"The law firm claimed that Bad Boys often did not provide a co-signer notice while finalizing bail bonds contracts, meaning that anyone helping someone out of jail could be left on the hook for the entire bail amount, according to the committee's announcement. Such notices are legally required for those contracts."
"As a result, the company must forfeit nearly $38 million in outstanding debt collected from more than 18,000 bail bonds contracts signed from 2017 through 2022. In addition, the company also must provide those notices in the future, and better train its staff."
Bad Boys Bail Bonds, a South Bay-based company operating statewide for nearly 30 years, settled a class-action lawsuit requiring forfeiture of $38 million in debt owed by thousands of Californians. The company allegedly deceived customers into signing illegal contracts and harassed them for payments they never agreed to make. A primary violation involved failing to provide legally required co-signer notices, leaving co-signers liable for entire bail amounts without their knowledge. The settlement mandates the company provide proper notices, improve staff training, and accept court-appointed monitoring. Attorneys characterized the agreement as protecting low-income families and communities of color from bail bond industry exploitation.
#bail-bonds-industry #consumer-fraud-settlement #class-action-lawsuit #predatory-lending-practices #consumer-protection
Read at The Mercury News
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