Payday Loan Laws in California
Regardless of where you live, payday loans follow the same basic pattern. However, if you are taking out California Payday Loans, you will have to follow the strict state payday loan laws that California has to govern these loans. Essentially, payday loans are a convenient way for people to access cash prior to their payday. The way that they work is simple.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for California Payday Loans is provided for your convenience.
California payday loan lenders may ask you to provide them with a few references. The lender will decide how much to lend you based on your income. Normally, they will not check your credit history. However, in California, they cannot lend you more than $300. When they give you the cash, you will give them a check that they can cash on your next payday. Alternatively, you may just give them permission to automatically withdraw the repayment amount from your checking account on that date.
On your repayment date, the lender of your California Payday Loans will take back the amount of the original loan plus their fee. Under state law, their fee cannot be more than fifteen percent of the original loan amount. Therefore, if a borrower borrows the maximum amount of money that is allowed by California law which is $300, their lender will be able to charge them up to $45. However, if they only borrow $100, the lender will not be able to charge them more than $15. Under state law, if a lender is loaning money to a member of the military or their children, they have even tighter restrictions on the fees that they can charge.
When their payday arrives, some people realize that they are not able to pay back the original loan. In some states, they may opt to pay another fee and take an extension on their loan or seek payday loan debt help. However, California Payday Loans cannot be extended by the original lender. Some borrowers think that they can extend the loan if they have borrowed less than the state maximum of $300. However, that is not true. They cannot take out two loans from the same lender at the same time. If they truly do not have the money, they risk having their check bounce. If their check bounces, the payday lender can charge them a fee that cannot exceed $15, and they can only charge this fee once. However, borrowers should keep in mind that their bank may charge them additional insufficient funds fees or overdraft fees for the bounced check.
When consumers are facing a financial emergency, they may feel like they have no way to get cash quickly. However, most consumers can get cash through California Payday Loans. These loans are relatively easy to get. However, borrowers should ensure that they will have the money to repay these convenient loans on time as there is no way to extend these loans.
Take a look at the benefits of applying for Online Payday Loans if available in your state.
Rudi is a credit analyst who writes articles about credit scores, building credit, and consolidating debt. His know-how on poor credit and credit unions make his input invaluable to our company. There is no credit score out there that Rudi can’t help with.