California Payday Loans

A California payday loan is a short term loan where the amount is paid back from a future paycheck, quite often the next one received. Under the provisions of short term lending legislation passed in 1996, a California payday loan can even be obtained through a check cashing company if they offer this service. Fortunately, the same legislation also protects consumers from unethical and predatory lenders.

Payday lenders in California are not allowed to charge more than $3 for a fee on a California payday loan in excess of $50. Lenders are also prohibited from charging interest at a rate more than 15%. These restrictions protect consumers from unscrupulous lenders who try to charge usurious rates or fees.

California payday loan services are increasing in recent years with more than 3,000 payday loan providers licensed in 2003. The growth of the payday loan industry has been phenomenal across the nation but California payday loans are especially accessible. Since check cashing companies can offer payday lending, it gives consumers many choices for their short term lending needs.

One probable factor in the proliferation of easily accessible California payday loans is the steady employment rate that has been enjoyed in California. The unemployment rate decreased in 2006 to 5.3%, almost a full percentage point from the year before. California's unemployment rate has remained stable for at least ten years and has not changed more than 3 points during that period.

California Payday Loan

Payday loans are a form of short term loan that gets repaid from the next paycheck. There are as many reasons to want a payday loan as there are people who want them. Sometimes a bill comes unexpectedly or your car breaks down in the middle of the week. You have no savings and your paycheck isn't due until Friday - what do you do? A California payday loan is a fast and easy solution to sudden expenses.

The laws that regulate the terms on a California payday loan have been in effect for eight years. Passed in 1996, the legislation spells out all the rules and restrictions on both the payday lender and the consumer. The law not only allows payday loan companies to offer services, but also check cashing businesses to offer payday loans to people who need them. This contributes to the rising payday loan industry in the state as it is quite easy to become licensed to offer these short term loans.

There must be a legal contract between the lender and the consumer that spells out the conditions of each transaction. All the details must be present in this written agreement including the amount of the loan, when the loan is due, any fees that will be assessed, and the interest rate that will be charged. The consumer will also be required to provide a valid identification such as a California driver's license or a state identification card.

The law even allows for a customer to make out a post-dated check for the amount of the loan. The payday loan company or check casher may not hold this check for a term of more than 30 days if this form of payday loan is chosen. The lender is limited to an interest rate of no more than 15% on a payday loan and there are caps on fees, as well. These restrictions prevent consumers from being charged outrageous amounts for a payday loan.

A California payday loan must be completed before the consumer can obtain another payday loan. Therefore, you cannot take one loan to pay another. Once one payday loan is completely repaid, and then you may take another loan with the lender if you choose to, but it will require a completely new agreement to be written to cover the new loan.

Although check cashing companies are legally allowed to offer payday loans, they may not be the best choice for most consumers. Dealing with a professional payday loan company such as LoansPayday.info will allow you to borrow from a lender that specializes in the California payday loan industry and is familiar with current laws. With fast and easy loan options, California residents can get the cash that they need when they need it.

Applying for a California payday loan through LoansPayday.info guarantees that you will be dealing with a professional, experienced payday lender instead of a fly-by-night operation that is not familiar with the laws or ignores them. Our company provides impeccable customer support and is highly rated among online California payday loan providers. We are there to help you with your sudden cash flow management needs on our fully secure website at any time, night, or day.

Our company will help you obtain a California payday loan when life takes an unexpected turn. Whether you need an emergency car repair or some other urgent need, the application process is quick and painless at our website. LoansPayday.info is an experienced, professional company that aims to provide superior customer service and prides itself on our innovative financial offerings.

When you need a little help with your finances to tide you over until payday, visit us to apply for a California payday loan. Your privacy is very important to us and you can feel confident in the security of our application process. Get your loan approved instantly online after filling out the short application so you can get the money you need now. Visit LoansPayday.info right now to start the fast and easy application and you can stop worrying about unexpected expenses.