A deferred deposit transaction is another name for a payday loan. California has a specific law restricting payday loans. Under the CDDTL, a payday loan borrower writes a personal check to the lender at the time the loan is issued. The maximum amount of that personal check is $300. The lender's fee cannot exceed 15% of that check amount. For example, a California resident who gives the lender a check for $300 will take home $255 if the lender charges the maximum fee. In addition, the term of a payday loan cannot be longer than 31 days.