California Deferred Deposit Transaction Law (CDDTL)

A deferred deposit transaction, commonly known as a payday loan, is a transaction whereby a person defers depositing a customer's personal check until a specific date, pursuant to a written agreement, as provided by California Financial Code Sections 23035. Personal check includes the electronic equivalent of a personal check.

A deferred deposit originator is any person that offers, originates or makes a deferred deposit transaction, arranges a deferred deposit for a deferred deposit originator, acts as an agent for a deferred deposit originator, or assists a deferred deposit originator in the origination of a deferred deposit is required to obtain a License from the Department of Corporations.

A Licensee can only engage in deferred deposit transaction business at the place of business (address) named in the license. Therefore, a license is required for the place of business where a licensee conducts deferred deposit transaction business over the Internet.

What's New
  • 03/12/2014 - The Department of Business Oversight (Department) is inviting the public to comment on questions concerning deferred deposit transactions and the potential economic impact to licensees and consumers from changes being proposed to the regulations under the California Deferred Deposit Transaction Law. The Department received a number of written comments on the proposed changes in response to the Invitation for Comments on Proposed Rulemaking Under the California Deferred Deposit Transaction Law (PRO 04-08), dated May 29, 2013. These comments offered insights that may suggest the need for further consideration and the Department believes it is in the public interest to obtain the views from all interested parties before moving forward on the proposed changes. Accordingly, the Department is seeking additional information from interested parties and parties who would be subject to the regulations. The period within which to comment on this proposed regulatory action ends on May 19, 2014. (Invitation for Comments, PRO 04/08.)
  • 12/24/2013 – The Annual Report Form 2030, for Licensees Engaged in Business under the California Deferred Deposit Transaction Law (CDDTL) for Year Ended December 31, 2013, should be submitted electronically. The Department has emailed a link to the Annual Report Form 2030 to each CDDTL licensee’s designated e-mail address on file. If you have not received the link to the Annual Report Form 2030 or if you have questions regarding your Form 2030 please contact: RespondToDBO@dbo.ca.gov.
  • 11/08/2013 – The California Department of Business Oversight has released the results of a survey of payday lenders in California. The survey gathered information on transaction volume and amounts, customer borrowing and repayment patterns, collection practices, and compliance practices of payday lenders regulated by the California Deferred Deposit Transaction Law (CDDTL).  You may view the survey results here
  • 11/08/2013 – The 2012 Annual Report of operation of Deferred Deposit Originators is now available.
  • 06/12/13 - The Commissioner of Corporations is requesting comments on proposed changes to the regulations under the California Deferred Deposit Transaction Law concerning deferred deposit originators, commonly known as payday lenders. The proposed changes under consideration include recommendations from the Department of Corporations’ report entitled Report to the Governor and the Legislature, California Deferred Deposit Transaction Law, December 2007, and other changes needed to clarify certain requirements and regulate activities that have evolved since enactment of the law such as the origination of deferred deposit transactions over the Internet, use of bank-issued prepaid debit cards in conjunction with deferred deposit transactions, and digital and other technological developments in banking and commerce that have changed the way consumers obtain and repay their financial obligations. The Commissioner is seeking comments from interested parties prior to initiating a rulemaking action, and requests that comments be received by August 16, 2013. (Invitation for Comments, PRO 04/08)