Payday Loans in California State
California payday loans are generally known to be among the most government-restricted financing options available. Still, many people use them, and if you know your stuff, you should be fine.
- The maximum amount of time you can keep the loaned money and not have the lender cash your check is 31 days. But since the annual interest rate (APR) you get yourself into will be really high, it is highly advisable that you minimize the amount of time you hold the money for (until the lender cashes your check.)
- Payday loans (CA) cannot exceed $300.00 each.
- You can have no more than one payday loan in the State of California.
- There is no cooling-off phase like in many other states, so you can pretty much get a new loan right after you’ve repaid a previous one.
- You are not allowed any rollovers.
- Getting California payday loans, you cannot be charged more than 15% of the check amount. A two-week $100 payday advance California loan would cost you $17.65. That comes to around 459% APR.
- The lender cannot charge you for an extension, and it is entirely up to them whether to grant you one.
- It is entirely up to the lender whether to offer you a repayment plan, in case you do not have enough money to pay the lender back. If you are offered a repayment plan, no fees may be associated with it. In other words, it would be illegal for the lender to charge you any repayment plan fees. And getting them to offer you a repayment plan is your problem, the government of California says.
Don't Have The Money In Your Account?
Any criminal procedures associated with payday loans are prohibited in the State of California. That is despite the fact that payday loans in CA are quite widespread. In other words, you would not be criminally prosecuted if it happens that you don’t have enough money on your account.
As for collection fees, you could face a $15.00 NSF fee, which is a fee for having insufficient funds in your bank account.
Be Smart About It
Remember, payday loans (California) are as risky, as in any other states. The fact that you cannot be criminally prosecuted does not change anything. You can get into real trouble if you are not smart about your money.
Since getting a repayment plan depends on your lender, it is strongly advised that you build a long-lasting relationship with your local payday loan lender in California.
Local budget finance payday loans can get real tricky, and if you have someone ask for advice, please do so. Alternatively, you could also ask your friends or just people you know. At least some of them must have dealt with payday loans in the past. Doing so will surely help you and protect from unnecessary trouble.