Need to Know Facts About Payday Loan Consolidation in California

California laws prohibit payday loans from being more than $300. You can only have one loan out at a time, even if the combined value of multiple loans would be less than $300. These laws prevent consumers from ever needing payday loan consolidation.

Basic Payday Loan Rules in California

There are some very simple rules regarding payday loans in California. The first has been mentioned. You cannot borrow more than $300 or have more than one payday loan. A payday lender cannot charge you more than 15% in fees. If your repayment check bounces, the payday lender can only charge you a bounced check fee once and that fee cannot exceed $15.

Verify the Payday Lender’s California License

The state is very careful about protecting its residents. Payday lenders must have a license. This ensures consumers that the company will not charge an illegal interest rate or charge excessive fees. The State of California has a website set up where you can check the license of a payday lender before you take out a California payday loan. If you prefer, you can call 1-866-275-2677 to learn if the company you’re interested in has a valid license.

Understand The Rules for Military Members

Federal laws protect military members and their family members from having to pay excessive payday loan fees. These rules extend to anyone in California, too. As a result, you may find California payday loan companies do not want to extend a loan. If that happens, the next tip may be extremely helpful to you.

In Over Your Head? Get Help

Even with careful planning, an emergency situation can wreak havoc on your budget. If you do find yourself considering a payday loan in California, it may help to talk to a financial counselor. If you need a payday loan consolidation due to loans you took out while living in other states, the California Department of Business Oversight recommends talking to the National Foundation for Credit Counseling before you take out a payday loan and then decide if there are other options you haven’t considered.