Stay updated on the title loan lending regulations in California!
Borrow $2,500 Or More With Your Car's Title
California Title Loan Lending Laws
Are you considering a car title loan from a licensed lender in California but are unsure how the process works or what you can legally be charged for interest rates and other fees?
As with any loan offer, you should understand the regulations that secured lenders must follow in your state. By familiarizing yourself with California state laws, you can better understand the current limits and fees that apply to licensed lenders. Our goal at California Title Loans is to provide you with the most up-to-date title loan regulations.
Assembly Bill 539, the Fair Access to Credit Act, was passed a few years ago. This act severely limited the interest rates lenders could charge in California. The governor signed this bill late in 2019 and fully implemented it in January 2020. This law established interest rate caps for all loans of $2,500 to $10,000, including installment, payday, and title loans. These new rules have brought significant changes in California, as many large lenders have reduced the loans they offer.
What To Know About Title Loan Requirements & Regulations In CA
Are you considering a car title loan or another personal loan? If so, you must first understand the various State laws governing residents seeking a secured loan. California has recently been in the spotlight for alternative consumer lending options.
With most car title loans in California, you get cash within one business day from a state licensed direct lender. In this scenario, your vehicle will be held as collateral, helping you secure a car title loan of $2,500 or more. Secured loans are generally easy to get if you have equity in a vehicle. While your credit history is not the most important factor during underwriting, underwriters must verify your "ability to repay" through documentation checks of your income (banks statements, pay stubs, etc).
California does not have specific title loan requirements when compared to other states. That means they fall under the restrictions already in place for payday and installment loans. There are no specific underwriting requirements in California for what kind of car a lender will accept. However, lenders often prefer vehicles that are less than 10 years old and have fewer than 100,000 miles. In addition, the car must be fully paid off and have a title showing you as the sole owner. A good rule of thumb when determining the title loan value of a car is that it needs to be worth at least double the amount of money you're looking to borrow.
Many of the largest online title loan companies will use the car's current resale value to determine a loan amount. If it’s a vintage car, the regular rules may not apply. California title loan laws don’t specify what creditors may require for collateral or underwriting. This lack of stipulations allows creditors to create rules according to their preferences. This can be viewed in different ways. However, it often offers greater flexibility in financing terms and loan length.
Minimum Loan Amounts and California Title Loan Interest Rates
In California, $2,500 is often the minimum amount you can borrow from most licensed finance companies. Anything under that amount won’t comply with current lending regulations, and frankly, it doesn't make sense for a lender to offer loans at that level.
For title loan amounts between $2,500 and $10,000, the maximum APR is 36% plus the federal funds rate. Loans within this range must have a minimum repayment term of 12 months. For loan amounts over $10,000, there is no interest rate cap in California.
The Risk of Default and Repossession of a Vehicle From An Title Loan Lender In California
Repossession can occur upon a breach of contract. Your vehicle can be taken anywhere in California if you fall behind on the payments. In some cases, it can also happen if the lender finds out the information you gave them isn’t valid. While this is serious, most legitimate pink slip lenders don't want to go this route as it costs them time and money to repossess a vehicle and bring it to auction. Many companies that promote title loans online will try to work with you. Some will try to set up alternative payment plans so you can get back on track. If you miss a payment, you might have a certain amount of time before repossession occurs.
According to California repossession laws, the creditor can take the vehicle once payment is one day late. Besides, the creditor isn’t obliged to give you prior notice that they are taking your car. All in all, the specific terms should be in your contract. Make sure you fully understand the contract terms. That way, you’ll reduce the risk of failing to abide by the contract. Contact your lender if issues arise and you can't make a payment on a CA auto equity loan!
An online title lender must comply with California's title loan laws regarding repossession if they take your car. They must notify you after repossession, tell you where the vehicle is, and what you need to do to get it back. The car can be sold in as few as 15 days after you've received a notice of intent to sell.
Any title loan company in California must inform you about its intent to sell your car with at least 15 days’ notice. If you believe your lender has violated state repossession laws, you can file a complaint with the DFPI. You should receive the notification within 60 days after the vehicle was taken. You can request a "reinstatement" once every 12 months as you try to get the car back. If your vehicle is sold at auction, your lender must return any surplus funds to you (typically the amount remaining after your original loan amount and reasonable repossession costs are covered). Conversely, you will still owe your lender if the car sells for less than the current loan amount!
This article was last updated for compliance on January 16, 2026. Contact California Title Loans at 855-339-1001 with further questions about the title loan lending laws in California.