What California law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Payday loans[1][2][3] | AllowedHigh-cost loan | Not verified | Up to $300 | Up to 31 days | Deferred Deposit Transaction license | Cal. Fin. Code Section 23000 et seq. |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
The rules in full
Payday loans
- Fees
- California Deferred Deposit Transaction Law (CDDTL), Cal. Fin. Code Section 23000 et seq., caps the personal check amount at $300 and the fee at 15% of the check face amount (a $300 check nets the borrower about $255).
- License
- Deferred Deposit Transaction license issued by DFPI.
Full detail for every loan type: California lending laws.
Help in California
Rent and jobs in California
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in California
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
- Nonprofit credit counseling through the National Foundation for Credit Counseling.
- A payment plan from the company you owe, if you ask before you miss a payment.
- 211 for help with rent, utilities and food: call 211 or visit 211.org.
More cheaper options in California.
Other loan types allowed in California
Payday loans in nearby states
Sources
- dfpi.ca.gov. Cal. Fin. Code Section 23000 et seq.. Retrieved September 23, 2026.
- abnk.assembly.ca.gov/sites/abnk.assembly.ca.gov/files/CALIFORNIA DEFERRED DEPOSIT Background ELECTRONIC VERSION.pdf. Retrieved September 23, 2026.
- dfpi.ca.gov. California Department of Financial Protection and Innovation (DFPI). Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: California. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in California. Each lender sets its own rates and terms and must show you the APR before you sign.
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- Questions about a lender licensed in California? Contact the California Department of Financial Protection and Innovation (DFPI) or file a state complaint.
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