Payday Loans

Payday loans are short-term cash loans based on personal checks held for future deposit or on electronic access to the borrower's bank account. Borrowers write a personal check for the amount borrowed plus an expensive finance charge and receive cash. Lenders hold the check until the next payday when payment is due. Borrowers can redeem the check for cash, or allow the check to be deposited.

In California, the lender is not supposed to allow the borrower to pay a finance charge to roll the loan over for another pay period. While this is against the law, many lenders violate it.

Find out more about payday loans:

  • What Is a Payday Loan?
    Payday loans are short-term cash loans based on personal checks held for future deposit or on electronic access to the borrower's bank account.