How Many Payday Loans Can You Have in California?

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Payday loans are short-term, small-dollar loans typically designed to help individuals with immediate financial needs. In California, payday loans are regulated by the California Deferred Deposit Transaction Law, which imposes certain restrictions and regulations to protect borrowers.

Here are some key points about payday loans in California:

  1. Loan Limits: The maximum loan amount for payday loans in California is $300. Lenders cannot provide loans exceeding this amount.
  2. Loan Term: The loan term is limited to a maximum of 31 days. Borrowers must repay the loan, including any applicable fees, by the end of the loan term.
  3. Fees and Charges: California law allows lenders to charge fees of up to 15% of the loan amount. For example, if you borrow $300, the maximum fee you may be charged is $45. This fee is considered the finance charge for the loan.

(Note: The annual percentage rate (APR) on payday loans in California can be significantly higher due to the short-term nature of the loan. It is advisable to carefully consider the cost of borrowing before obtaining a payday loan.)

  1. Borrower Eligibility: To qualify for a payday loan in California, you must have a steady source of income, such as employment or government benefits, and a valid checking account. You also need to be at least 18 years old and a California resident.
  2. Borrowing Limitations: California law sets certain limitations to prevent borrowers from taking out multiple payday loans at once. You can only have one loan with a single lender at a time and cannot extend or rollover a payday loan. If you cannot repay the loan on time, lenders must offer a repayment plan of at least four equal payments over a period of no less than 60 days.
  3. Consumer Protections: The California Department of Financial Protection and Innovation (DFPI) is responsible for regulating and licensing payday lenders in the state. They also provide resources for consumers regarding their rights and protections when dealing with payday loans.

It is essential to carefully review the terms, fees, and conditions of any payday loan before committing to it. Payday loans can be an expensive form of borrowing and should be used as a last resort for short-term financial emergencies. It is advisable to explore alternatives like personal loans, credit unions, or seeking financial assistance from family or friends before considering a payday loan.

How Many Payday Loans Can You Have in California?

In California, you are allowed to have only one payday loan at a time from a particular lender. Additionally, you cannot take out more than one payday loan from different lenders that total more than $300. California law places limits on payday loans to protect consumers from becoming trapped in a cycle of debt.

Best Payday Loans in California of September 2023


Rating is 5 out of 5



Rating is 5 out of 5



Rating is 4.9 out of 5



Rating is 4.8 out of 5


Rating is 4.7 out of 5

Are payday loans legal in California?

Yes, payday loans are legal in California. The California Department of Business Oversight regulates and licenses lenders that provide payday loans in the state. However, there are certain restrictions and regulations imposed on payday lenders to protect consumers, such as limits on loan amounts and finance charges. It is advisable to only borrow from licensed lenders and to carefully review the terms and conditions before taking out a payday loan.

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