Car Title Loans in California2026 Guide
California has strict regulations on title loans, particularly for loans under $10,000.
Legal Status & Regulations
Governing Law
Cal. Fin. Code §22000+
Last Reviewed: April 2026
Law Summary
The Fair Access to Credit Act (AB 539) significantly changed the landscape in California. For loans between $2,500 and $10,000, interest rates are capped at 36% plus the federal funds rate. Lenders must be licensed under the California Financing Law and provide clear disclosures regarding the cost of credit, including the APR and total finance charges. California also requires lenders to offer a 15-day grace period for late payments and prohibits certain predatory practices such as mandatory arbitration clauses in loan agreements. Furthermore, if a vehicle is repossessed, California law requires a "Notice of Intent to Sell" to be sent to the borrower, detailing the amount needed to redeem the vehicle and the date of the intended sale.
Real Rate Example in California
A $1,500 loan in California at a typical market rate of Capped for small loans APR over 30 days would result in approximately $150 in interest and fees. Always compare multiple offers to find the most competitive rate.
What Documents You Need
- A clear vehicle title in your name
- A valid government-issued ID (Driver's License)
- Proof of residency (Utility bill, etc.)
- Proof of income or ability to repay
- The vehicle itself for a quick inspection
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Max Loan Amount
Varies
Max APR / Rate
Capped for small loans
Loan Term Range
Varies
Governing Body
Department of Financial Protection and Innovation