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.
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.