Compare Loans in California helps you compare different online loan options in California. Compare California online loans and payday loans below and read more about California loan laws.

California Short Loans Rules and Regulations

california loansPayday loans in California are useful when you need a short-term loan immediately. The following names are popular with payday loans in California:

  • Cash advances
  • Deferred deposits
  • Fast cash

Each state has its own regulations when it comes to lending options. This information is important to both lenders and borrowers in order to ensure every party gets their fair share.

California has rather strict laws regarding payday loans and installment loans. Thus, most lenders have opted to withdraw their services in California and go to other states which have been considered less restrictive.

To obtain California payday loans, the lender must be licensed by the Department of Business Oversight. Of course, you may decide to go for unlicensed lenders. However, these lenders will not need to follow lending rules governing California.

California Cash Advances Rules

  1. The maximum loan amount is $300
  2. Loan term for payday loans can be extended to 31 days
  3. A lender can charge no more than 15% as fee
  4. Interest rates cannot exceed 36%

These regulations only apply to short-term loans although there are a few other minor rules. If your loan payment bounces the lender can only charge you once, up to $15. Your lender can not offer another California installment loan to pay off the original loan.

You have the right to ask for all paperwork regarding the loan. Just like most states, lenders in California limit loan services to military members. Rules are bound to change. Perhaps, other laws might be introduced in future so always confirm the laws before you apply.

Do Lenders Abide by the Rules?

The regulations only apply to companies offering California payday loans and installment loans. Most reputable companies will honor the guidelines. However, some lenders claim these laws don’t factor into their lending process since they are not headquartered in California.

Lenders based offshore also assume these regulations don’t apply to them. All in all, it’s important to ensure a lender is lawfully allowed to conduct business in the state to benefit from the following protections provided by the state law:

  • Limits on the dollar amount of payday loans
  • Limits on fees consumers can be charged
  • Lenders obliged to provide important information about loans

What the Lender Must Tell Consumers

As a borrower, you have the right to know the fee full amount including the APR. It’s your right to know California online payday loans obligations. Lenders cannot accept collateral against the cash advances.

What Lenders Cannot Do

  • Accept collateral on a California payday loans
  • Take blank checks
  • Provide lending service to a borrower who already has an outstanding payday loan
  • Commit unlawful or deceptive act
  • Make intentional misleading statements
  • Threaten you for non-payments

Advantages of California Online Payday Loans

Most of the California payday loans are available within the next day. Such quick funding is a hassle free technique to obtain a loan.

Moreover, borrowers with a bad credit history can still get funding. This makes California installment loans a decent option in comparison to banks.