Separate the check amount from the cash received
This illustration is limited to California deferred-deposit transactions. It does not determine approval or verify a lender.
Fee = check amount × fee percentage; cash received = check − fee. Annualized example = fee ÷ cash received × 365 ÷ days × 100. Selected limits: $300 check, fee up to 15%, term up to 31 days. Read the linked California source and provider disclosure.
Worked example and calculation
$300 check − $45 charge = $255 received, with $300 due. At 14 days, the example annualized charge is 460.08%. A $300 cash-received example from another page is not this California transaction.
A California payday-loan figure can refer to the face amount of a check rather than money paid to the borrower. Under the deferred-deposit provisions cited here, that distinction changes both the cash received and the cost calculation.
This page explains selected California rules and how to verify a provider. It does not confirm that LendingClub or a partner is licensed or offering credit in California.
Selected deferred-deposit limits
| Item | Rule in the cited California provisions |
|---|---|
| Face amount of check | No more than $300 |
| Transaction fee | No more than 15% of the face amount |
| Cash at the maximum fee on a $300 check | $255 |
| Maximum term | 31 days |
These provisions concern California deferred-deposit transactions. They are not a universal amount or pricing rule for every personal loan, credit line or financial product. 1 2
Follow the money in the maximum-fee example
Check amount: $300.
Fee: $300 × 15% = $45.
Cash received: $300 − $45 = $255.
The borrower receives $255 in this illustration, not $300 plus a separate $45 fee. The amount represented by the check is $300.
For a hypothetical 14-day period, the simple annualized calculation is $45 ÷ $255 × 365 ÷ 14 × 100, approximately 460.08%. This is an illustrative calculation, not a substitute for the required disclosure on an actual agreement.
An extension is not permission to add any charge
The cited law allows a licensee to permit an extension or payment plan without an additional fee or charge. It also restricts paying an existing deferred-deposit transaction with proceeds from a new one and multiple simultaneous transactions with the same customer. Read the actual statutory provisions and agreement for the precise scope. 1 2
Do not assume a provider must approve every requested arrangement or that a generic national rollover example applies in California. Ask for the balance, revised dates and treatment of the original payment in writing.
Returned checks and collection questions
The cited fee provision permits one returned-check charge up to $15 under its conditions. It does not authorize unlimited repeated charges. The law also addresses criminal proceedings in connection with a deferred-deposit transaction. These rules should not be generalized to all debts or payment disputes. 2
If a payment problem develops, keep the agreement and contact the actual creditor. Use repayment guidance to prepare the information without treating this website as a loan servicer.
Verify the actual provider with DFPI
California payday lenders under the deferred-deposit framework are regulated by the Department of Financial Protection and Innovation. Use its official licensing resources to check the exact company, product and status.
A website logo, copied number or similar brand name is not enough. If a record does not match the agreement or communication, clarify the discrepancy through independently verified contact details before sending money or more information.
Legal rules and this website’s availability are different
A description of permitted transactions does not establish an active offer. Actual availability would require a named authorized provider, verified coverage, current terms and eligibility review. The $35,000 personal-loan planning ceiling elsewhere on the site is not a California payday limit.
No application or positive coverage status should be inferred from this page. Read State rules & checks for the distinction between a rule, provider coverage and an individual decision.
California privacy information is separate
The California privacy notice explains browser-local calculator inputs and website data practices. It does not grant lending authority. A privacy-choice link and a lending license answer different questions.
Where to raise a concern
For a problem involving a provider or deferred-deposit transaction, use the official DFPI consumer complaint route and follow its current instructions. Keep the relevant provision and page passage when documenting a factual discrepancy.
California questions
Can I receive $300 with the maximum $45 fee deducted? That illustration leaves $255 received. Distinguish the check amount from cash proceeds.
Do these rules limit every California personal loan to $300? No. The cited provisions cover a specific transaction framework.
Does this page prove LendingClub is licensed? No. Licensing belongs to the actual named company and activity and needs its own official verification.
Does a payment plan automatically add another fee? Under the cited deferred-deposit provision, a permitted extension or payment plan may not involve an additional fee or charge. Confirm the arrangement in writing.
Where is the relevant information kept? Use the official code and DFPI sources below rather than a reused rate table.
Further checks for this decision
Use the state financial agency directory as a starting point, then confirm which regulator and record cover the particular provider and product.3
Identify whether an online application belongs to a lender or an intermediary, who receives personal information and which provider handles any offer.4