Payday Loans in California
Are payday loans available in California?
California regulates payday loans as deferred deposit transactions. They may be available through licensed providers, but the state places limits on transaction amount, fees and loan term.
California law summary
| Regulator | California Department of Financial Protection and Innovation (DFPI) |
|---|---|
| Maximum transaction amount | Commonly summarized as $300 including fee; verify current DFPI guidance. |
| Maximum fee | Often described as up to 15% of the check amount; confirm with official sources. |
| Term | Cannot exceed 31 days under California deferred deposit rules. |
| Rollovers | California does not allow a licensee to roll over or extend a deferred deposit transaction by charging additional fees. |
Repayment example
If a borrower receives $255 and pays a $45 fee on a $300 transaction due in 14 days, the cost is high when annualized. Always review the lender's exact disclosure because fee treatment and repayment timing affect APR.
Before applying in California
- Verify the provider through DFPI.
- Confirm total repayment amount and due date.
- Ask what happens if the payment is returned by your bank.
- Consider lower-cost alternatives before using a high-cost short-term product.