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California · checked October 24, 2026

Payday loans in California: the rules and your way out

Payday loans allowed, with limits

California's Deferred Deposit Transaction Law lets DFPI-licensed lenders defer a borrower's personal check of up to $300 for up to 31 days for a fee of no more than 15% of the check's face amount.

Law: Cal. Fin. Code §§ 23000-23106 (California Deferred Deposit Transaction Law), esp. §§ 23035-23038. California Legislative Information (leginfo.legislature.ca.gov) code text read 2026-10-24; §§ 23035-23037 show no amendment since Stats. 2002, ch. 777; § 23038 amended by Stats. 2017, ch. 514

California's rules, line by line

Largest loan
The face amount of the check may not exceed $300 (Cal. Fin. Code § 23035(a)); at the maximum 15% fee the borrower receives $255 (DFPI example).
Shortest term
No minimum term stated in the CDDTL.
Longest term
Up to 31 days (Cal. Fin. Code § 23035(a)).
Fee or rate cap
"A fee for a deferred deposit transaction shall not exceed 15 percent of the face amount of the check" (Cal. Fin. Code § 23036(a)); no other amounts may be charged (§ 23036(f)).
Renewals and rollovers
Not permitted in effect: a lender may not accept or use the same check for a later transaction or let a customer pay off all or part of one payday loan with the proceeds of another (Cal. Fin. Code § 23037(a)).
Waiting period between loans
No waiting period between loans found in the CDDTL.
Loans at once
One per lender: a licensee may not make a new deferred deposit transaction with a customer while an earlier agreement with that customer is in effect (Cal. Fin. Code § 23036(c)). No cross-lender limit.
Payment plan if you cannot pay
Optional, not required: a licensee 'may allow' an extension of time or a payment plan for repaying an existing loan, but may not charge any additional fee of any kind for it (Cal. Fin. Code § 23036(b)). Ask the lender for a no-fee extension or payment plan; if one is granted it must be described in the written agreement (§ 23035(e)(6)).
State loan database
No
Limits on collection
No criminal penalty for failing to comply with the agreement, and the borrower cannot be prosecuted or threatened with prosecution for a returned check (Cal. Fin. Code § 23035(b), (c)(3), (d)(1)). One returned-check fee of no more than $15 is the exclusive charge for a dishonored check, and no late fee may be added (§ 23036(e)). Lender cannot recover treble damages under Civil Code § 1719 (§ 23036(d)). Lenders are subject to California's Rosenthal Fair Debt Collection Practices Act (Civ. Code § 1788 et seq.) (§ 23036(g)). No collateral (§ 23037(b)); agreements may not contain a confession of judgment, wage assignment, acceleration clause or hold-harmless clause (§ 23035(h)).
Other rights
Written agreement and notice in the language used in negotiations, with TILA fee and APR disclosures (Cal. Fin. Code § 23035(c), (e)-(g)); loan may not be conditioned on buying insurance or other products (§ 23037(c)); violating the federal Military Lending Act also violates the CDDTL (§ 23038).

If you are behind on a payday loan in California

  1. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
  2. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
  3. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.

You do not have to sort this out alone

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