A short-term cash advance, also known as an installment loan, is legal in California and it is under the regulation of California Deferred Deposit Transaction Law. The regulation aims to protect consumers from getting taken advantage by payday loan lenders.
Anyone that wants to operate a cash advance/payday loan business in California must possess a valid license that is issued by the Department of Corporations. It is important that you only apply the loan from a licensed lender. Lenders that are not licensed will not follow the payday loan laws in California.
Under the regulation, the maximum amount that a payday lender can lend to each customer is $300. The maximum length of the loan term is 31 days. The maximum APR interest on a 14 day loan of $100 is 459%. The maximum finance charges for a 14 day loan of $100 is 17.65%. The maximum fee that can be charged on a bounce check is $15.
The payday loan industry in California is booming. The statistic shows that there are more than 500,000 hits on payday loan in the early part of the 2017. They are not allowed to sue the borrower if the loan is not paid within the loan term.
Recently, the CFPB has tried to impose a regulation on short term cash advance loans with the excuse that they want to help consumers to relieve their burdens. But, many consumers fought back and claimed that payday loans lenders have help them. They prevent days of worrying by helping them to meet their expenses.
Cash advance is a type of loan that must be pay back by the next payday. It usually has a loan term of 2 weeks to 1 month. You can apply cash advance at a local payday loan shop or online. The only downside is that it has expensive finance charges but the loan can get approved fast and you can receive the funds immediately.
Payday lenders can accept all borrowers regardless of their credit score. Bad credit won’t be a problem as long as you can provide proof that you are capable of paying back. If you apply it at a local shop and it gets approved, they will hand you the cash immediately. If you apply online, you have to wait for them to deposit the funds into your bank account in the next business day.
There are a few basic requirements that you have to meet including 18 years old, permanent citizenship and stable job. It is important that you fill in accurate information in the application form such as name, social security number, employer contact information and income information. When shopping for cash advance, make sure that you compare the interest rate and fees. Fees that are often charged in a payday loan include collection and rollover fees.