In California, there are regulations in place to limit the number of payday loans a borrower can have simultaneously. California's Deferred Deposit Transaction Law, which governs payday lending, sets restrictions on the maximum amount a borrower can borrow and the number of loans they can have outstanding at one time.
As per California law:
A borrower cannot have more than one payday loan outstanding with the same lender at any given time.
The maximum loan amount is $300.
Additionally, there are restrictions on the total amount of fees a lender can charge. The fees must be disclosed to the borrower in terms of an Annual Percentage Rate (APR), which includes both interest and fees.
These regulations are designed to protect consumers from falling into cycles of debt and to ensure that payday loans are used responsibly. Borrowers in California should be aware of these laws and borrow only what they need and can afford to repay. It's important to consider alternative financial options and to avoid relying on payday loans for long-term financial solutions.