What you need to know about Short-term Loans Department
of Business Oversight State of California:
Common Sense
Financial Tips:
California Rates and Terms
California Rates and Terms
Net Pay Advance, Inc. is an approved short-term lender in the state of California. View License→
Governing Law for California
Governing Law for California
The loan agreement will be governed by the applicable laws.
Maximum Loan Amoun
Maximum Loan Amount
The maximum loan amount for California residents will be $255.00.
Fees and Charges
Fees and Charges
Your loan fee will be $17.65 per $100 borrowed.
Loan Lengths
Loan Lengths
- Typically your loan will be due on the next day you are paid that falls between 8 and 31 days away.
- If your pay dates fall outside of these ranges, your loan will be due in 31 days.
Pay Off
Pay Off
In accordance with California law, your loan must be paid in full on the due date. Early payoff requests must be received by 6:00 PM Pacific time one day prior to your due date. Principal Amount and Finance Charge Table→
Additional Information
Additional Information
Net Pay Advance cannot use the criminal process against a consumer to collect on any deferred deposit transaction. California law only allows each consumer to have one loan with Net Pay Advance at a time.
What you need to know about Short-term Loans
Department of Business Oversight State of California:
What is a Short-term Loan?
What is a Short-term Loan?
Short-term loans are also called "cash advances" or "deferred deposits". With a short-term loan, a borrower writes a check to a lender in exchange for a short-term cash loan. For example, a borrower writes a $300 check, pays the $45 fee, and receives $255 in cash. The lender does not cash the check until the next day the borrower is paid, up to 31 days.
Fees for Short-term Loans
Fees for Short-term Loans
Under California law, the maximum loan amount a consumer can borrow in a short-term loan is $300. The maximum fee a short-term lender can charge is 15% of the face amount of the check (up to a maximum of $45). Additional fee restrictions apply for military and their dependents. A 15% fee is equivalent to an annual percentage rate (APR) of 460% for a two-week loan. By comparison, a loan for a new car generally has an APR of between four and seven percent.
APR is the total annual interest rate that a borrower pays on a loan, including all fees and charges. APR is used to reveal the total cost of borrowing money.
If You Take Out A Short-term
If You Take Out A Short-term Loan
Borrow only as much as you can afford to pay back in full on the next day you are paid. On the loan due date, some borrowers find they cannot afford to pay back the loan. Borrowers are encouraged not to take out a second loan from another short-term lender to repay the first, as this can lead to a cycle of debt from which it will be expensive and difficult to recover.
Loans to Military Members
Loans to Military Members and their Dependents
Due to recent changes in federal and California law that restrict short-term loan fees for military service members and the dependents, some short-term lenders may choose not to make loans to service members and their dependents.
California Law Protects You
California Law Protects You
In California, all short-term lenders - whether a storefront or online - must be licensed by the Department of Business Oversight if they are going to do business in the state. Visit the Department's website to verify a lender's license.
A short-term lender may only make you one loan (which cannot exceed $300), and may only charge a maximum fee of 15% of the total amount of the check (up to $45). Additional fee restrictions apply for military service members.
Short-term lenders must post their California license and a fee schedule at every location.
A short-term lender cannot make you a new loan to pay off an existing loan.
A short-term lender cannot make you a new loan while an existing loan is outstanding, even if the combined balance of the existing loan and the new loan does not exceed $300.
If your check bounces, the short-term lender may charge only one bounced check fee(up to $15). (Be aware! –your bank may charge you additional fees for insufficient funds.)
Additional fees cannot be charged if you request an extension of time or payment plan. However, the short-term lender is not legally required to grant your request.
By law, the contract for a short-term loan must be provided to you in the language you primarily used to negotiate with the lender.
A short-term lender cannot threaten to prosecute you in criminal court for insufficient funds.
You may also have other legal protection under California law. If you need help or suspect violations of the law, please contact the Department of Business Oversight.
If You Have Credit P
If You Have Credit Problems
Call your creditors and ask to waive late fees, reduce the interest rate, and/or work with you to establish a repayment schedule that will work for you.
If you have missed bill payments or have other credit troubles, you may benefit from the services of a financial counselor. Counselors help review your entire financial situation and help you develop a personalized money management plan. Be aware - just because a debt management agency claims to be "non-profit" does not guarantee the services are legitimate or affordable.
A reputable agency should send you free information without requiring you to provide any personal details. Look for a range of services, including budget counseling and savings and debt management classes. Avoid any that push a debt management plan as the only option before they analyze your financial situation.
Visit the National Foundation for Credit Counseling (NFCC) website
www.nfcc.org or call Toll Free 1.800.388.2227 for assistance with credit problems and creditors.
If You Are Facing
If You Are Facing Bankruptcy
Recent Federal laws require credit counseling before you can declare bankruptcy. Go to
http://www.consumer.ftc.gov/articles/0224-filing-bankruptcy-what-know for help and information about Credit Counseling.
The U.S. Department of Justice Trustee Program approves organizations to provide mandatory counseling before you can declare bankruptcy and mandatory debtor education after you declare bankruptcy.
Go to
http://www.justice.gov/ust/eo/bapcpa/ccde to find an approved organization near you.
Common Sense Financial Tips:
Avoid Future Money
Avoid Future Money Problems
Create a budget (list all sources of income and all monthly expenses, including total owed).
Prioritize your debts (pay most expensive interest rates first); cut all unnecessary expenses.
Build up a rainy day fund by setting aside a small amount per paycheck in a savings account. Get into the habit of making regular deposits.
Online Short-term
Online Short-term Loans:
CAUTION! The department strongly urges consumers to verify a lender is licensed before sharing personal information. You can verify a lender's license by checking www.dbo.ca.gov or calling Toll Free 1.866.275.2677.
Unlicensed lenders may illegally collect from your bank account directly without your permission, even if you are unable to repay the loan.
You might be illegally charged an interest rate far higher than California law allows.
Unlicensed Internet short-term lenders might sell or pirate personal financial information.
Lenders may be operating out-of-state or offshore, making it hard to track them down and recover your lost funds if they violate the law.
If you wish to file a formal complaint against an unlicensed lender, visit www.dbo.ca.gov and submit a Consumer Complaint Form with the Department of Business Oversight.