Payday Loans in California: The Facts
Payday loan customers MUST have:
A checking account
A steady source of income
Payday loans are often less expensive than other short-term credit or real-life alternatives like:
Fees and interest for bounced checks or overdraft protection. Skipped bills with interest, late charges, and reconnect fees.
Missed days of work because of, for example, needed auto repairs.
Fees for Payday loans are fixed and have not changed since 1996
Interest or late charges are not allowed by law. The fee is capped at $45 and loans are limited to $255 for a maximum of 31 days. Payday loans are regulated by the California Department of Financial Protection and Innovation (DFPI) Customers cannot take a new loan if one is outstanding from the same lender.
The process is straightforward and transparent.
Fills out application and is shown the terms. Writes a check for up to $300, which will be held uncashed.
Receives the loan - the check amount less the one-time fee. Pays back the loan on the next payday or the check is cashed or deposited.
Consumers are protected if a payback problem arises.
There is no collateral at risk.
The law limits collection measures and damages, and prohibits criminal action.
Payment plans, without additional cost, are widely available for customers who cannot pay back their loan on time.
Payday loan customers MUST have:
A checking account
A steady source of income
Payday loans are often less expensive than other short-term credit or real-life alternatives like:
Fees and interest for bounced checks or overdraft protection. Skipped bills with interest, late charges, and reconnect fees.
Missed days of work because of, for example, needed auto repairs.
Fees for Payday loans are fixed and have not changed since 1996
Interest or late charges are not allowed by law. The fee is capped at $45 and loans are limited to $255 for a maximum of 31 days. Payday loans are regulated by the California Department of Financial Protection and Innovation (DFPI) Customers cannot take a new loan if one is outstanding from the same lender.
The process is straightforward and transparent.
Fills out application and is shown the terms. Writes a check for up to $300, which will be held uncashed.
Receives the loan - the check amount less the one-time fee. Pays back the loan on the next payday or the check is cashed or deposited.
Consumers are protected if a payback problem arises.
There is no collateral at risk.
The law limits collection measures and damages, and prohibits criminal action.
Payment plans, without additional cost, are widely available for customers who cannot pay back their loan on time.