West · Allowed
Payday loans in Washington
Storefront payday lending is permitted in Washington. State law caps what lenders can charge — the limits below are the legal ceiling, and honest lenders stay under it.
The limits below are the legal ceiling — any offer above them is being made outside the law.
The rules behind the numbers
A small loan is not intended to meet long-term financial needs. Washington borrowers are limited to 8 small loans per 12-month period.
In practice: borrow $300 for a standard term and the finance charge is $45 — $345 repaid at the end, about 391% APR. Every compliant lender in Washington has to fit inside that schedule.
Statute: RCW 31.45.010 et seq.
Regulator: Washington State Department of Financial Institutions · dfi.wa.gov
Questions people ask here
How much can a payday loan cost in Washington?
State law caps fees at 15% on first $500 ($15 per $100), 10% on amount over $500. On a typical $300 loan that works out to about $45 in finance charges — repaying $345 in total. A lender charging more than the cap is operating illegally.
What happens if I can't repay on time in Washington?
This state's rules on rolling the loan over: forbidden. If you can't pay, ask the lender for an extended payment plan before you renew — and call the state regulator if the plan is refused.
Are online payday lenders legal in Washington?
Only lenders licensed in Washington may make loans to residents at these terms — the license, not the website, decides what's legal. Out-of-state lenders offering terms above the state cap are operating outside the law.
Who regulates payday lenders in Washington?
Complaints about a licensed lender go to the Washington State Department of Financial Institutions (dfi.wa.gov) — keep the loan agreement and every fee disclosure you were given.