As a matter of fact, a customer walked in recently to our office and asked — as we offer car title loans — can’t we offer payday loans as well? Well, that’s a great question to ask. What is a difference from a payday loan and a car title loan?
Let me start with what is common. For California licensed payday lenders and car title loan lenders, they are regulated by the Department of Business Oversight which is great news as it protects consumers and makes lenders accountable. Also, the DBO designates two different licenses: Car title loan lender is under the California Finance Lender’s License and payday lender is under the California Deferred Deposit Transaction Law (CDDTL).
Now, what are the differences? Typical APR for payday loan is roughly 400% in comparison to car title loan which ranges 84% to 199%. Please note that Windsor Quick Funding offers lowest rate than our competitors. Typical loan term for payday loan is 14 days, and car title loan is 30 days. Loan size for payday loan ranges from $100 to $1,000. For car title loan, it is $2,600 and up.
After reading this brief overview, you may want additional information about payday loans. You can check out http://www.consumerfinance.gov/askcfpb/1567/what-payday-loan.html as well as the DBO website here: http://www.dbo.ca.gov/Licensees/Payday_Lenders/Default.asp
Got anymore questions? Is the interest rate higher than you would like to pay? Are you considering refinancing your car title loan after reading you have option to pay less interest rate and would like to manage your monthly payments with us? Feel free to contact us at 1-888-730-1399. We are here to help you find a solution!