Payday loans are available in California, but they are an expensive form of credit. Alternatives to payday loans in California can provide cash in an emergency, but may have lower interest rates and fees, give you the ability to build credit, and offer other benefits that you won't get with a payday loan. The maximum loan term under California law is 31 days, and loan renewals are not available. Websites offering payday loans are lead generators for payday lenders across the country, but state laws only affect businesses operating in that state.
Cash advances have an additional advantage over payday loans — they're highly regulated and you'll have the full protection of the law. Several efforts are now being made to further regulate payday lenders or hold them accountable for their ill-gotten profits. Moneytree offers a repayment plan only for payday loans. You can find more information about payday loan laws and regulations in California on the official website of the California Department of Business Oversight (DBO) Division of Corporations.
A payday loan agreement must be provided in the language that was mainly used in the course of negotiations with the lender. The Internet allows payday lenders to access borrowers across the country, so lenders in states with permissive laws can take advantage of borrowers around the world. Your credit card provider may offer cash advances; they have high interest rates, but not as high as payday lenders. Payday lenders often don't consider whether you can repay the loan because they can only cash your check or access your checking account.
You can contact the Department of Financial Protection and Innovation (DFPI) to verify a payday lender's license, history of disciplinary actions against a payday lender, or to file a complaint. And fraudulent payday lenders often use temporary websites and route transactions through intermediaries, making it very difficult to find the culprit.
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