Payday Loan help for California people
"23005. (a) No person shall offer, originate, or make a deferred deposit transaction, arrange a deferred deposit transaction for a deferred deposit originator, act as an agent for a deferred deposit originator, or assist a deferred deposit originator in the origination of a deferred deposit transaction without first obtaining a license from the commissioner and complying with the provisions of this division." Doing deferred presentment business in California without obtaining license is illegal.
Top Queries
- How do I know if the lender is licensed in CA or not?
- How much can a licensed lender charge on fees?
- What if the check returns NSF?
- Where to complain if I find anyone violating the rules?
How do I know if the lender is licensed in CA or not?
Check all the licensed institutes under the Financial Services Division Licensee Address Listing.
How much can a licensed lender charge on fees?
Fees for Deferred Presentment transaction (payday loan/cash advance) shall not exceed 15% of the face value of the check. And face amount of check (loan amount) shall not exceed $ 300.00. Lender can offer extension or repayment plan to make the repayment easier, however, no additional fees can be charged for late payment or extension.
What if the check returns NSF?
Lender can add maximum $15.00 for returned checks; however, the customer cannot be prosecuted for a returned check that is involved in Deferred Presentment process.
All these information must be mentioned in the agreement paper presented before entering into the transaction. Moreover, lender should mention the chargeable fees in terms of USD and APR in the agreement paper which should be signed by both the lender and the customer.
Where to complain if I find anyone violating the rules?
Deferred Presentment Institutes are looked after by the California Department of Corporations, visit their website to inquire about licensing or file complaint.
