§ 22323 Out-Of-State Loan Collection Limits

• •If you lend money to someone in California from another state, you can't charge more interest or fees than California allows.
• •This rule applies even if the loan was made outside California.
• •If you try to collect too much interest or fees, you're breaking the law.

You take out a $1,000 loan from a company in another state, and they charge you $200 in interest and fees.

If California only allows $100 in interest and fees for a $1,000 loan, the company can't make you pay the extra $100. If they try, they're breaking the law.