If a bondsman returns the premium can the bondsman charge a usual, customary, and reasonable fee for services provided in the transaction?

If a bondsman returns the premium can the bondsman charge a usual, customary, and reasonable fee for services provided in the transaction?

• A. Yes, always
• B. No, never
• C. Only if agreed upon in the contract
• D. Only if approved by court

Answer: (C)

The key point is that what a bondsman can charge beyond the initial premium is governed entirely by the contract between the bondsman and the principal (or the principal’s representative). The premium is the fee for posting the bond, and even if that premium is returned in some circumstances, it does not by itself authorize additional charges. Any extra fee described as “usual, customary, and reasonable” must be specifically allowed in the contract. Court approval is not the default requirement for these charges; if the contract does not authorize them, they cannot be imposed. Therefore, such charges are permissible only when the contract explicitly provides for them.

The key point is that what a bondsman can charge beyond the initial premium is governed entirely by the contract between the bondsman and the principal (or the principal’s representative). The premium is the fee for posting the bond, and even if that premium is returned in some circumstances, it does not by itself authorize additional charges. Any extra fee described as “usual, customary, and reasonable” must be specifically allowed in the contract. Court approval is not the default requirement for these charges; if the contract does not authorize them, they cannot be imposed. Therefore, such charges are permissible only when the contract explicitly provides for them.