Payday loan laws in Washington

Are payday loans legal in Washington?

Yes — payday loans are legal in Washington. State law licenses lenders and caps what they may charge: the ceiling is 15% on first $500 ($15 per $100), 10% on amount over $500. Any offer above these limits is being made outside the law, no matter where the lender is based.

Legality is a licensing question: a storefront or website may serve Washington residents only if it holds the Washington license and keeps every charge inside the statutory schedule — RCW 31.45.010 et seq..

How much a payday loan can cost in Washington

The statutory ceiling is 15% on first $500 ($15 per $100), 10% on amount over $500. On a standard $300 loan that works out to about $45 in finance charges — $345 repaid at term, roughly 391% APR. A two-week $15-per-$100 fee equals about 391% APR, which is why the APR column looks the way it does even in “cheap” states.

Cost is capped, not quoted: a lender may charge less than the ceiling, never more. Compare total repaid, not the headline note rate.

Loan terms, rollovers and the one-loan rule

The statutory term is Max 45 days. On renewals: forbidden. No rollovers — instead the lender must offer an extended payment plan of 90 or 180 days. One loan at a time through a statewide database; maximum $700 or 30% of gross monthly income, whichever is less. Where a statewide database exists, it is what makes these limits enforceable in real time — the lender queries it before every loan.

Online payday loans in Washington

Online lenders must be licensed in Washington and report to the same database; the cap applies regardless of where the company is based.

Verify the license before you sign at dfi.wa.gov — search the lender’s exact legal name. If it is not licensed, the loan is being made illegally and the regulator’s complaint desk is the right destination.

Who regulates payday lending in Washington?

The Washington State Department of Financial Institutions licenses lenders, publishes the fee schedule and takes complaints from borrowers.

1. Keep the loan agreement, every fee disclosure and your payment history.
2. File a complaint with the Washington State Department of Financial Institutions (dfi.wa.gov) — describe the charge or practice and attach the documents.
3. If the lender turns out to be unlicensed or the complaint stalls, escalate to the Washington Attorney General and the CFPB complaint portal.

Your rights as a borrower in Washington

• Right of rescission. End of next business day — return the proceeds and walk away at no cost.
• Full disclosure. The lender must state the APR and the total of payments before you sign; a missing disclosure is itself a violation.
• No criminal exposure for default. An unpaid loan is a civil debt — arrest threats are an illegal collection tactic.
• Payment-plan right. In nearly every licensing state you can demand an extended payment plan instead of a rollover — ask for it in writing.

Legal alternatives in Washington

federal credit-union payday-alternative loans (PALs, APR-capped at 28%), installment loans from state-licensed lenders, employer salary advances and local assistance programs — all cheaper than rolling a payday note.

Questions about Washington payday loan laws