California Deferred Deposit Transaction (Payday Loan) Law
A deferred deposit transaction is commonly known as a payday loan. Here's how they work under the California Deferred Deposit Transaction Law (CDDTL):
The consumer provides the lender (called an originator under the CDDTL) a personal check for the amount of money desired. The lender provides the consumer the money, minus an agreed-upon fee. The lender then defers depositing the consumer's check for a specific period of time.
Under the CDDTL, the amount of the consumer's personal check cannot exceed $300. The lender cannot charge a fee that is higher than 15 percent of the check amount. So, for example, a borrower who gives the lender a check for $300 will take home only $255 if the lender charges the maximum fee of 15 percent. The term of a payday loan cannot last longer than 31 days.
- 10/19/2015 – The portal for filing applications online to obtain California Finance Lender (CFL), Deferred Deposit Transaction (CDDTL) and Escrow licenses is now available. Applicants may file applications and pay licensing and other fees using the portal found at https://docqnet.dbo.ca.gov. Questions should be directed to CFL.firstname.lastname@example.org, CDDTL.email@example.com or firstname.lastname@example.org.
- 06/16/2015 – The 2014 CDDTL Annual Report is now available.
- 04/07/2015 – DBO Announces Effort to Fight Search Engine Advertising by Unlicensed Payday Lenders
- For Archives Click Here
- What Consumers Need to Know about Payday Loans
- Search for Licensees
- File a Complaint
- Payday Lending Alerts Archive
- Consumer Advisories
- Consumer Alerts
- Questions and Answers Regarding Licensing and Conducting Business
- Requirements After a CDDTL License Has Been Issued
- CDDTL Law (Financial Code Division 10)
- Regulations, Legislation, Commissioner's Opinions and Releases
Companies licensed under the California Finance Lenders Law, California Deferred Deposit Transaction Law, and Escrow Law, may access the Self-Service DOCQNET Portal to submit applications for licensure, view the status of applications, submit annual report information, and update contact information.