California Payday Loan Consumers Share their Experiences

Editor’s note: The CFPB, a federal agency, has proposed new rules for payday, car title, and high-cost installment lenders.

BUT, they need to hear from consumers- that means you! We have an easy-to-use page where you can weigh in- it only takes a minute and will help bring about important consumer protections with these loans. Please share a line or two in the comments box about why you care about this issue and want to see strong federal reforms.

PS: You do NOT have to be a payday, car title, or installment borrower to sign the petition.


How do California consumers who have used payday loans feel about them?

These are just a few of the many stories we’ve heard from consumers who have shared their stories with CRC:

1. MN from San Bruno, CA: “I am currently fighting online payday loans as we speak. I got in to a bind and had to borrow to make sure my daughter and I continued to have a roof over our head. These lenders take money on different days than what was agreed upon and don’t tell you all the fees that they will be adding into on top of the interest. I have one company that I can’t even access my “contract” and they never sent me a copy. If the vicious cycle doesn’t stop the best recourse people in this cycle will have is to file bankruptcy.”

2.  JF from Fresno, CA: “About two years ago I used a payday loan to assist with monthly expenses. I thought it would be easy to pay off but then I noticed I could not afford to pay the loan without securing another! The lenders provide little to no other option to pay back the loan which lets you know they aren’t concerned with helping you get through the hard spot they are more concerned with keeping you in the endless cycle to pad their pockets! Payday loans are BAD business!!!”

 3. SF from Oakland, CA: “In 2006 I was working full-time but when my boyfriend moved out I had to pay the entire rent myself and had trouble making ends meet. I started to use the payday loans and soon found myself in an endless cycle of debt, having to pay off two or more in cash every two weeks in order to get two more to cover my bills. The loan rates were outrageous and some of these franchises require you pay in cash instead of depositing your personal check. It took me a couple of years to get out of this cycle of debt and it kills me to think of all the money I lost on fees over those years. I will never use those services again. These companies are absolutely predatory and should be fully regulated and restricted since they profit from the people who can least spare the financial fleecing. Thank you.

4. JJ from Lamont, CA: No work, needed money to keep afloat and the lender made it to easy to get loan, a car title loan and it has been a nightmare, do yourself a big favor don’t ever get a title loan !

5. M from San Diego, CA: I have been caught up in payday loan for over a year now it’s taking all of my money and I don’t know how to get out help.

6. DD from Los Angeles: “I was in a difficult financial time in my business and needed a $2500 loan to cover my rent that was due. I had exhausted all my other options and wasn’t expecting any checks for a few weeks. I own my car and decided to go to Loanmart to get a loan. I called them up, told them what I needed and what kind of car they had. They approved me for $3000, even though I asked them for only $2500. Considering I was desperate for money, I went ahead with it, not knowing about the interest cap over $2500. Which I am sure they were well aware of and is why they urged me to get a higher loan.

So, after 2 years of paying, I have now given them over $4500, that’s $1500 more than the original loan. They say I still owe them $3000. For a total of $7500 due on a $3000 loan. Its highway robbery. These people are awful, they harass me all the time, lie to me about payment due dates and even on one occasion sent me to collections on a missed payment even though I had already paid it for that month from their 3rd party payment site (moneygram). I went and checked and the payment never went through. Which is very suspicious.

Now they are threatening to repo my vehicle. I don’t know what to do, this whole experience has been horrible. I am self employed and struggle enough getting by. I hope someone can sue them for these shady business practices. I will be more than happy to testify against them.”


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