California Payday Loans

California imposes a $300 limit on the amount that a payday loan may be offered in the state. Payday loans can be taken for the period of no longer than 31 days. No additional charges are allowed for the extension of a loan. No rollovers are allowed. There are no cooling-off periods between 2 consecutive loans.

The maximum finance charge in California is 15% for every $100 (e.g. $30 for a $200 loan) and 460% APR. There is an allowed $15 NSF fee for failure to repay a loan as agreed upon in the loan contract and a loan contract is required.

You can only have one (1) payday loan outstanding at any given time.

In the State of California the amount of the consumer's loan cannot exceed $300. The lender cannot charge a fee that is higher than 15 percent of the check amount. So, for example, a borrower who gives the lender a check for $300 will take home only $255 if the lender charges the maximum fee of 15 percent. The term of a payday loan cannot last longer than 31 days. You can have more than one payday loan as long as the loan(s) meet the criteria already noted.

Usually, your payment date is your next pay date, which is 2-3 weeks from the date of your loan. But it can be up to 31 days since some people get paid monthly.

Generally, the answer is no. Most payday loans are deposited directly into your checking account and then repaid in the same way i.e., taken out of your account on your next payday. Lenders have different policies, so ask your lender if you wish to pay in a different manner.

Yes, you can always pay our loan early. It will not affect the fees you are charged for the loan, but lenders will accept early payment. Contact your lender directly if you wish to pay your loan early.

No, rollovers are allowed, but there is no cooling-off period between 2 consecutive loans. So, you cannot extend your loan, but once it is paid, you can get another loan.

You can only extend the date to a maximum of 31 days from the date it began. However, this is subject to your lender’s approval, so do not assume you can do so.

For payday loans, usually, the loan amount & any fees are debited from your bank account on the due day. However, in some cases, lenders ask for a post-dated check as a guarantee of repayment. This check holds the original principal loan amount and additional applicable loan fees. The maturity date on the check corresponds to the next payday of the borrower, and it is retained until the repayment date.

The law allows California payday lenders to sue to recover loan funds. In these cases, if the suit against the borrower ends in a judgment, the payment can be a nightmare for the consumer. The lesson: never get a payday loan you cannot repay on time.

If you default on your loan the lender may refer you to a collection agency. No criminal charges will result for a breach of contract. The lender can pursue a judgment against you or force you into bankruptcy through a civil action but cannot pursue a criminal action against you. Some collection agencies use aggressive tactics including threats that are not legal. Consult an attorney if you find yourself in this situation.