Payday loans in California: the rules
Research draft — pending verification against the California Department of Financial Protection and Innovation (DFPI). {{VERIFY}}
Payday lending is legal and regulated in California.
Deferred deposit transactions are legal under the California Deferred Deposit Transaction Law.
The numbers at a glance
| Status | Legal |
|---|---|
| Maximum amount | $300 |
| Fee / rate limits | Up to 15% of the face amount of the check |
| Term limits | Up to 31 days |
| Regulator | California Department of Financial Protection and Innovation (DFPI) |
All figures are drafts compiled from public sources and must be confirmed with the regulator before relying on them. State legislatures change these rules — see our state law update tracker.
Payday loans in Los Angeles, San Diego, San Jose and across California
The same state rules apply whether you're in Los Angeles, San Diego, San Jose, Fresno, Sacramento or Long Beach — payday lending in California is regulated at the state level, so the caps and terms above hold statewide, storefront or online. Online requests like ours reach the same state-licensed lenders that serve every California ZIP code, without a trip to a storefront. City ordinances can add local rules for storefronts in some states {{VERIFY}} — the loan agreement must follow state law either way.
Free and low-cost help in California
Before borrowing — or if a loan has already gone wrong — every California resident can call 211 for emergency rent, utility, food, and medical assistance programs in Los Angeles and statewide (what 211 covers). Nonprofit credit counseling is free or low-cost statewide, and complaints about a lender go to the California Department of Financial Protection and Innovation (DFPI), which also runs the license lookup you should check before signing. See also: how to verify a lender's license.
What a typical loan costs in California
California's fee rule (Up to 15% of the face amount of the check {{VERIFY}}) is what your loan agreement has to respect. As a feel for the math: a two-week $300 loan at $15 per $100 costs $45 — about 391% APR — and the same fee structure over 30 days is about 183% APR. Run your own numbers in the cost calculator before you sign anything, and compare it against a pay advance app or credit union small-dollar loan first.
Borrowing here, sensibly
Legal doesn't mean cheap — payday-style credit in California still typically costs triple-digit APRs. Check the cheaper options first, run the numbers in the cost calculator, and if you do borrow, verify the lender's license with the California Department of Financial Protection and Innovation (DFPI) and never borrow more than your next paychecks can absorb.
California questions
How much can I borrow in California?
The state's general limit is $300. Individual lenders may offer less depending on your income and history. Draft figure — verify with the California Department of Financial Protection and Innovation (DFPI).
What do payday loans cost in California?
Up to 15% of the face amount of the check. Terms typically run Up to 31 days. Your loan agreement must state the exact finance charge and APR before you sign. Draft figures — verify with the California Department of Financial Protection and Innovation (DFPI).
How do I check whether a lender is licensed in California?
Search the California Department of Financial Protection and Innovation (DFPI)'s license database or call them before you sign anything. Licensed lenders must follow the state's caps and collection rules; unlicensed ones are a major red flag.