Title Loans in California

California has some of the strongest consumer lending rules in the country, yet car title loans are still sold in every major city. The reason is a size threshold: interest on many smaller loans is capped, while loans of $10,000 or more carry no statutory rate limit. If you are comparing title loans in California, that threshold explains a lot about the offers you will see. In this guide from Auto Cash Title Loans, we cover the law, the caps, your repossession rights, and how to check a lender before you hand over your pink slip.

Are title loans legal in California?

Yes. Car title loans are legal in California when made by a lender licensed under the California Financing Law (CFL), Financial Code Division 9. The Department of Financial Protection and Innovation (DFPI) licenses and supervises these lenders. A California title loan is a consumer loan secured by a lien on your vehicle; you keep driving the car while the lender holds its security interest.

The governing law: the California Financing Law and the Fair Access to Credit Act

For years, California capped rates only on consumer loans under $2,500, which is why many title loans were written at $2,500 or just above. That changed with AB 539, the Fair Access to Credit Act, which took effect January 1, 2020. It limits CFL loans of at least $2,500 but under $10,000 to an annual simple interest rate of 36% plus the federal funds rate, bars prepayment penalties on those loans, and requires lenders to report payment history to at least one credit bureau.

DFPI’s own consumer guidance summarizes the result: for automobile title loans under $10,000 made under a CFL license, interest is capped, while for title loans of $10,000 or more, lenders can charge unlimited interest rates. DFPI has also acted against lenders it believed were evading the caps, including a 2021 agreement with LoanMart that barred it from marketing or servicing California title loans under $10,000 at rates above 36% for 21 months.

What the law allows and limits

• Loans under $2,500: subject to the CFL’s tiered rate caps, which are much lower than typical title loan pricing.
• Loans of $2,500 to $9,999: capped at 36% simple interest plus the federal funds rate, with no prepayment penalty.
• Loans of $10,000 or more: no statutory rate cap, although California courts can still find an unconscionable rate unlawful.
• Repossession notice: under Financial Code 22328, after a repossession the lender must give you at least 15 days’ written notice before disposing of the vehicle (20 days if the notice is mailed to or from an address outside California).
• Right to redeem: that notice must tell you that you can redeem the car by paying the full balance, itemize what you owe, and say whether you can reinstate the loan. On written request, the lender must extend the redemption period by 10 days.
• Deficiency: you can be held liable for a shortfall after sale only if the lender sent a proper notice within 60 days of the repossession, subject to limited exceptions.

How a title loan works in California

The lender appraises your car, confirms your income and identity, and records its lien. California title loans are typically installment loans repaid over months or years. Because the rate cap disappears at $10,000, some borrowers are offered more than they need. We found no rule requiring a $10,000 minimum, so if you only need $3,000, ask for $3,000 and the capped rate that comes with it.

What a California title loan can cost

The cap on a $2,500 to $9,999 loan moves with the federal funds rate. As an illustration only, if that rate were 4%, the maximum simple interest would be about 40% a year. On a $3,000 loan, that is roughly $100 a month in interest on the full balance, before principal. A $10,000 loan has no statutory ceiling, so read the APR on the contract carefully. Our guide to how much title loans cost walks through the math.

Title loans in California’s major cities

State law applies the same way in every California city, so the rate caps and the 15-day redemption notice are identical in Los Angeles and in Fresno. Bing searches show heavy interest in Los Angeles and San Diego in particular.

• Los Angeles: The state’s largest city. Many lenders advertise online to LA borrowers; any lender making a CFL loan needs a DFPI license, which you can confirm before applying.
• San Diego: A major military region with Naval Base San Diego and Marine Corps Base Camp Pendleton to the north. The federal Military Lending Act caps covered loans to active-duty members and dependents at a 36% military APR.
• San Jose: High vehicle values can push offers above $10,000, the point where California’s rate cap no longer applies. Borrow only what you need.
• San Francisco: The same CFL rules apply. Ask any lender for the APR in writing and compare it with a credit union offer.
• Fresno and Sacramento: Central Valley borrowers face the same law. If a lender quotes a rate above the cap on a loan under $10,000, report it to DFPI.

Some Californians ask about borrowing across the state line. See our Nevada title loan guide before considering it; the loan may be governed by Nevada law, and repossession can still reach your car at home.

Safer alternatives

• Credit union PALs: federal credit unions can lend $200 to $2,000 at no more than 28% APR, with an application fee of $20 or less.
• Smaller CFL installment loans: loans under $10,000 come with rate caps and credit reporting that can help you build credit.
• Car-secured credit union loans: many credit unions offer loans against a paid-off vehicle at ordinary auto loan rates.
• Hardship help: utilities and many medical providers have payment-assistance programs, and 211 can connect you to local aid.

More options are in our title loan alternatives guide.

How to check a lender’s license and file a complaint

Search DFPI’s licensee database for the lender’s CFL license before you apply, and be wary of lenders that claim a bank partner lets them ignore California caps. Keep your contract, the repossession notice and payment records. Learn your borrower rights, and file a complaint with DFPI if a lender overcharges or skips required notices.

Frequently asked questions

What is the maximum interest rate on a California title loan?

It depends on the amount. Loans of $2,500 to $9,999 are capped at 36% plus the federal funds rate, smaller loans have lower tiered caps, and loans of $10,000 or more have no statutory cap.

Is there a minimum amount for a California title loan?

We found no statutory minimum. Lenders set their own minimums, and some may prefer larger loans because rates are uncapped at $10,000 and above.

How long do I have to get my car back after repossession?

The lender must give at least 15 days’ written notice before disposing of the vehicle, and you can redeem it by paying the full balance during that window. You can ask in writing for 10 more days.

Who regulates title lenders in California?

The Department of Financial Protection and Innovation licenses title lenders under the California Financing Law and takes consumer complaints.

Can I get a California title loan if I’m in the military?

The federal Military Lending Act limits covered loans to active-duty service members and dependents to a 36% military APR, which most title lenders won’t offer.

Sources

• DFPI: Automobile Title Loans, What Consumers Need to Know
• AB 539 (2019), Fair Access to Credit Act, chaptered text
• California Financial Code 22328: Notice before disposing of a repossessed vehicle
• DFPI: Agreement with LoanMart on high-interest title loans (2021)

Last reviewed: October 2026.