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What is California's Fair Access to Credit Act?

Short answer

California's Fair Access to Credit Act (AB 539, 2019) caps APRs on consumer loans between $2,500 and $10,000 at 36% plus the federal funds rate. The law eliminated triple-digit-APR consumer lending in California for amounts under $10,000.

Context

Before AB 539, California allowed installment loans of $2,500-$10,000 with no APR cap, leading to consumer loans at 100%+ APR. The Fair Access to Credit Act set a binding ceiling that aligned with the federal Military Lending Act's 36% cap.

For California residents, the law means meaningfully better-priced credit for $2,500-$10,000 loans. Above $10,000, California has no APR cap, though most mainstream lenders price well below the regulatory ceiling because of market competition.

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

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