Permitted Regulated Verified 2026-09-06 · ver. 0.2.3 How we verify these rules

Payday Loans in California

California payday loans are legally “deferred deposit transactions.” The check face amount is capped at $300, the fee is capped at 15% of that face amount, and the transaction may run no longer than 31 days.

California legal category: Deferred Deposit Transaction · California Financial Code, Division 10 — California Deferred Deposit Transaction Law

California payday loans at a glance

Legal status
Permitted Regulated
Legal category
Deferred Deposit Transaction
Maximum amount in this regime
$300
Term
Up to 31 days
Regulator
California Department of Financial Protection and Innovation (DFPI)
Verified
2026-09-06

Choose a loan type by amount

PLS Cash Advance currently presents request amounts from $200 to $5,000. The ranges below are navigation guidance between our state loan guides — not statutory limits, eligibility rules, or a promise of approval.

$200–$300 Current guide

Payday Loans in California

Preferred routing only for very small short-term requests. California caps the deferred-deposit check face amount at $300; with the maximum 15% fee, a $300 check provides $255 in cash.

$300–$5,000

Installment Loans in California

Preferred routing for larger or multi-payment requests within the current PLS Cash Advance amount selector. California Financing Law rules differ below $2,500 and from $2,500 upward.

See Installment Loans

Amount and term limits

The face amount of the customer’s check or electronic equivalent may not exceed $300. Because the fee is deducted from that face amount, a $300 transaction provides $255 in cash when the maximum 15% fee is charged.

California permits the lender to defer deposit for no more than 31 days. The statute does not encode a general minimum term in §23035.

Interest, fees and repayment

The 15% ceiling is applied to the face amount of the check, not to the cash actually received. A payment-plan or time extension may be offered without any additional fee or charge.

The transaction fee may not exceed 15% of the check face amount. A single returned-check fee up to $15 may be charged; no late-payment fee may be added.

The original transaction is tied to the agreed deferred-deposit date. A licensee may allow an extension or payment plan, but may not charge an additional fee for that extension or plan.

Rollovers, refinancing and early payment

Rollover allowed?
No
A licensee may not make a new deferred deposit transaction for the same customer while an earlier agreement is still in effect, and DFPI guidance says proceeds of a new transaction may not be used to pay an existing transaction from the same licensee.
Prepayment penalty allowed?
Not reduced to a yes/no rule
The core CDDTL provisions used for this page do not reduce early payoff to a single prepayment-penalty field. The page therefore does not claim a separate statutory prepayment rule.

California borrower protections

  • Payday lenders must be licensed by the California DFPI, including out-of-state businesses making deferred deposit transactions online to California residents.
  • A customer may have only one deferred deposit transaction in effect at a time with the same licensee.
  • The written agreement must disclose fees, APR, payment obligations, due date and returned-check charges.
  • The lender may not accept collateral or make the payday transaction contingent on buying another product or service.
  • An extension or payment plan may be offered, but no additional fee or charge may be imposed for it.

California loan cost calculator

This calculator is an educational illustration based on the structured rules shown on this page. A statutory ceiling is not a typical market price or an offer from a lender.

How to verify a lender in California

Regulator: California Department of Financial Protection and Innovation (DFPI).

California Deferred Deposit Transaction Law (CDDTL) license

Verify a lender license

Official sources

  1. California Financial Code §23035 — Deferred deposit transaction amount, term and disclosures · primary
  2. California Financial Code §23036 — Fees, extensions and overlapping transactions · primary
  3. California DFPI — Payday Lenders · primary
  4. California DFPI — Payday lender licensing and conducting-business FAQ · primary
  5. California DFPI — Regulated Entities List · primary

Last regulatory verification: 2026-09-06. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.