Regulator Details

Washington Department of Financial Institutions

Division of Consumer Services
PO Box 41200
Olympia, WA 98504
Phone: (360) 902-8700
Fax: (360) 725-7827
Contact: Deborah Bortner, Director of Consumer Services

Washington Payday Loan Laws

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Washington Payday Loan Laws Details

The data provided here is for general informational purposes and should not be used as legal reference. If you have questions regarding Washington payday loan laws contact the Washington Department of Financial Institutions.

Payday loans are legal (lender must have a small loan endorsement to their check casher license in order to make payday loans) in Washington (see Washington Payday Loans or Washington Installment Loans to compare fees and requirements for individual lenders).

Feature Specification
Amount (max) $700 or 30% of gross monthly income, whichever is less
Rates or Fees (max) 15%: first $500; 10%: remaining portion of the loan in excess of $500 up to the $700 maximum
Term Limitations Max: 45 days
General Loan Terms

In Washington, no rollovers are permitted (cannot repay loan with proceeds of another). Nothing is mentioned about cooling periods between loans. Washington borrowers are eligible for an installment plan at no extra cost if they notify lender on or before the loan is due. The repayment plan is 90 days for debt of $400 or less and at least 180 days for larger debts.

For example, in Washington the rates and fees on a 14 day, $100 loan are:

Terms Amount
Loan Amount $100
Fees $15
APR 390%
Sample Loan Terms

Washington also defines regulations around collections. If available, the table below lists the fees lenders are permitted to charge if the loan is not repaid and/or whether a lender can threaten use of or use criminal action if a borrower is unable to repay a loan.

Feature Specification
Collection Fees $25 NSF fee (one time per instrument); collection costs (excluding attorney's fees, interest and damages)
Criminal Action Prohibited
Regulations on Collections
Finally, a more detailed excerpt from Washington's statutes on finance charges is listed below. In general the tables above summarize this.

(a) Interest. 1. Except as provided in sub. (12) (b), this section imposes no limit on the interest that a licensee may charge before the maturity date of a payday loan. 2. If a payday loan is not paid in full on or before the maturity date, a licensee may charge, after the maturity date, interest at a rate not exceeding 2.75 percent per month, except that if a licensee makes a subsequent payday loan to the customer under sub. (12) (a), and the customer does not pay the subsequent loan in full on or before the maturity date of the subsequent loan, the licensee may charge, after the maturity date of the subsequent loan, interest at a rate not exceeding 2.75 percent per month on the subsequent loan and the licensee may not charge any interest under this subdivision on the prior loan. Interest earned under this subdivision shall be calculated at the rate of one−thirtieth of the monthly rate charged for each calendar day that the balance of the loan is outstanding. Interest may not be assessed on any interest earned under this subdivision. A licensee may not assess a customer any fee or charge for database access or usage. No licensee may make a payday loan to a customer that results in the customer having an outstanding aggregate liability in principal, interest, and all other fees and charges, to all licensees who have made payday loans to the customer of more than $1,500 or 35 percent of the customer’s gross monthly income, whichever is less. As provided in sub. (9m), a licensee may rely on a consumer report to verify a customer’s income for purposes of this paragraph.

Citation: Wash. Rev. Code Ann. 31.45.010 et seq.