Consider Whom to Call Other If a payday lender has violated ANY of your Don’t Get Trapped By Options! rights, please contact: Department of Corporations Client Resource Center: 1-866-ASK-CORP (275-2677) • Delay purchasing expensive items or make a complaint online at: http:// until you have more money saved. www.corp.ca.gov/comp/fsdinst.htm • Borrow money from a family member If a lender is harassing you to repay your or friend. loan, contact the California Attorney General at 1-800-952-5225 or the Federal Trade Commission at 1-877-FTC-HELP (382- • Apply for a credit card. 4357). • Ask your employer for an advance on Military borrowers can seek financial advice your paycheck. from Military One Source at 1-800-464-8107. • Build an emergency savings Tell Us Your Story • Seek out good credit counseling at To share your story and help warn oth- Payday Loans! www.debtadvice.org or 301-589-5600 ers, or for more copies of this brochure please contact: If a Payday Loan is Your Only Option, Choose Wisely California Reinvestment Coalition www.calreinvest.org Compare lenders for the lowest fees. • Some credit unions offer cheaper 474 Valencia Street, Suite 110 Avoid High Fees, San Francisco, CA 94103 payday loans with more time to repay. (415) 864-3980 458% APR or higher (415) 864-3981 (fax) • Borrow only what you can afford to email@example.com repay with your next paycheck. The California Reinvestment Coalition advocates for • Know when your payment is due, and the right of low-income communities and communi- California pay the loan on time and in full. ties of color to have fair and equal access to banking Reinvestment • Avoid borrowing from more than one and other financial services. CRC has a membership of more than 240 nonprofit organizations and public agencies across the State. crc Coalition lender at a time. Payday Beware! Lenders You Pay: What You Pay: Loans These Loans Target: • You write a $300 check are Addictive • You get $255 in cash Payday loans are intended to be • Working Poor taken out for emergencies, but many • People of Color • In 2 weeks the lender struggle to pay the loan back and • Military Personnel cashes your check have to keep borrowing more money, • Single Parents taking out loan after loan. People • Immigrants • Interest paid: $45 become trapped in a cycle of debt from which they cannot escape. How Payday Loans Work: • APR: 459% Payday loans are short-term cash loans Studies show borrowers take out an based on a personal check written by a average of 10 to 13 loans per year *Note: You can also return and pay from a single lender, and some may borrower. A lender holds the check until the with cash to reclaim your check borrower’s next payday when the loan and even have loans from other payday before it is deposited. lenders at the same time. a finance charge must be paid all together. Know Your Rights When Dealing with Payday Lenders!!! • In California, the maximum • It is against the law for a • A payday lender cannot send date or make payments on an legal amount of a payday loan is payday lender to offer you more you to jail or press criminal existing payday loan. The lender $300, which includes the fee. than one payday loan at a time. charges against you for a cannot charge you extra. bounced check. A lender can • The fee for a payday loan • If the check you wrote for the take you to small claims court to • The lender cannot require should not exceed 15 percent of payday loan bounces, both the collect on a delinquent loan. you to purchase other goods/ the face value of your check. lender and your bank will charge services to get a payday loan. you a fee. • The lender can’t resubmit a • Lenders are required to publicly bounced check to your bank • If the lender spoke to you in a display the cost of the loan with • It is illegal for the lender to more than three times. language other than English, both the finance charge and the charge you more than $15 for then your loan documents should Annual Percentage Rate (APR). a bounced check. • You can ask to extend the due be in that same language.