Like most states in the country, California has suffered greatly from the recent economic recession. California residents face a tough job market. Many residents find themselves just barely getting by with what they current make at their jobs. When a financial crisis strikes, such as an unexpected bill or other costs, residents of the Golden State may find themselves broke and unable to afford their basic necessities. You don’t have to suffer till your next payday. A California payday loan can help you get back on your feet. Below are a few facts you should know before you apply for your California payday loan. Keep in mind these facts are specific to California and may not apply to other states.
1. Lenders Must Be Licensed
A California payday loan can only be issued by a licensed lender according to the state Department of Corporations. Lenders are required to provide their licensing information on their website or store front locations in order to be eligible to lend money in the state. This protects borrows from receiving loan money from sources that have not been verified by the state as having met California payday loan standards. USAPaydayLoan.com will provide California residents with certified and licensed lenders.
2. One Loan Rule
In some states, borrowers can take out multiple loans at a time. This can lead to a destructive financial cycle and put the borrower in more debt than they can afford to get out of. California has regulated this process, implementing a one loan rule. At any given time, you may borrow only one California payday loan per lender. Your lender cannot extend you multiple loans if you still have another loan outstanding with them. Your lender cannot lend you an additional loan to pay off a past loan you have with them. You must play each loan in full that you have with a lender before they can allow you to borrow again.
3. Maximum Loan Amounts
A California payday loan cannot exceed $300 per payday loan. This is regardless of your income. As mentioned above, you must repay this loan amount to your lender before they can lend you another loan.
4. Maximum Loan Fees
Lenders can only charge borrowers a maximum amount of 15% of their total loan value as a lending fee. This means a maximum of $45. This fee will be deducted from your loan total, meaning if you borrow $300, you will receive $255. Additionally, in the event your check payment to your lender bounces, your lender can only charge you a maximum bounced check fee of $15 and can only charge you once. Of course your bank may charge fees for a bounced check. Your lender also cannot charge you additional fees to extend the repayment of your loan, but they can deny your repayment request.
5. Borrowing Time
Your California payday loan is due within 31 days of the date it was issued. If you cannot afford to repay your California payday loan within 31 days, contact your lender immediately as they may be able to assist you in an extension of your loan repayment date.
6. Military Restrictions
California and federal law has placed numerous restrictions on lending and borrowing when it comes to military service members. These restrictions can affect the amount eligible to borrow or the fees associated. Because of this, most lenders will often refuse to lend to service members.
7. Criminal Charges
Getting a California payday loan will not subject you to potential criminal charges if you are unable to repay. Under state law, lenders cannot threaten criminal charges against borrowers.