Many states have enacted laws to protect borrowers from predatory lending, and California Payday Loan Laws are no exception. In California, it is considered legal for a company to offer a payday loan or a cash advance. With that being said, you can choose to do business with thousands of “storefront” lenders across the state.
On the other hand, “internet payday lenders” must be licensed in California to offer loans to their residents. We have found most are licensed but some are not due to the high taxes CA charges.
California Payday Loan Laws are as follows:
California Financial Code §§ 23000 to 23106
Terms of a California Payday Loan
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Maximum Number of Loans at One Time: One
Rollovers: Prohibited (No fee can be charged for an extension)
Limits on Collection Fees:
Collection Fees: $15 NSF fee
Again, suppose you want to do business online with an internet payday lender. In that case, it is best to see if they are licensed in the State of California first to avoid hassles and predatory lending practices. You can check The Department of Corporations to see who is licensed.
