Payday Loan Legislation in California

Consumer rights advocates this year were backing the passage of Senate Bill 515 in the California State Legislature, saying that curbs were needed to rein in the triple-digit interest rates carried by payday loans in the state. The bill, which would have limited the number of payday loans a consumer could receive in any calendar year to a maximum of six, was sponsored by Senator Hannah-Beth Jackson of Santa Barbara and Senator Jim Beall of San Jose. The most recent efforts at payday loan regulation in CA, however, were stopped short by the payday industry's lobbyists and failed to gain enough votes to advance to the Senate.

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In addition to limiting the number of payday loans consumers could receive annually, the bill also sought to give consumers an additional period of time to repay the loans which typically carry hefty interest rates. Repayment usually begins on payday loans within 14 days of their receipt of the loan and on the customer's next payday.

Members of the powerful payday lobby who sought to stop the bill's progress said it not fair for the legislature to characterize payday loans as "debt traps" and that payday loans in fact serve as a "safety net" for many poorer California citizens who do not qualify for certain credit cards or for regular bank loans due to past credit history difficulties. In the opposing camp, many regular citizens, including students and single mothers, protested that the interest rates charged by payday loan vendors are high enough to be considered predatory.

According to most recent reports, more than 1.5 million consumers in California took out payday loans in the last year totaling about $12 million. Although the bill did not advance this time, it is considered still under consideration by the legislature's Banking and Financial Institutions Committee.

Payday loans are designed to be short-term in nature. Consequently, most such loans are due by your next payday. You should plan to pay back your loan within a two week to thirty day time period in most instances. Most people will find they are eligible for online payday loans; however, there are some eligibility requirements that do apply. Typically, you need to be at least 18 years of age and have a job or valid source of employment in order to qualify for a payday loan.

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In addition, you will usually be required to have a checking account with direct deposit. If you do not meet these eligibility requirements you may not be able to receive a payday loan.

A secured payday loan can be a great option when you find yourself in a financial bind and need some extra cash to tide you over until your next payday. These loans are short term in nature and are not designed to be a permanent solution to financial problems. When used wisely; however, they can be a temporary solution to financial woes.

Loans Can Ease Cash Crunch

Sometimes you need cash before your next payday, whether for an emergency car repair or an unexpected bill. A payday loan from Pangea Loan can be the answer. By providing a quick advance against your next paycheck, Pangea Loan can help you get the funds you need quickly and confidentially. Simply submit the easy online application on their website,, and in just a few minutes you will know if you are approved for a loan. Pangea Loan is not an actual lender. Instead, they act as a broker, sending your application throughout their network to help you find the best payday loan for your needs.

Before you request a payday loan, you should understand exactly what this type of loan is. It is a short term advance which must be repaid from your next paycheck. In order to qualify, you simply have to prove that you are employed and earning a steady income and that you have an active checking account. The amount of the loan for which you qualify will depend upon your monthly income. In order to ensure that you can afford to repay the loan, lenders will only advance a certain percentage of your paycheck. Each lender sets its own criteria for determining eligibility for funding.