Washington Payday Loans

Wash. Rev. Code Ann. 31.45.010 et seq.
Status: Legal (Lender must have a small loan endorsement to their check casher license in order to make payday loans)

Payday loans are legal in the state of Washington, pursuant to Wash. Rev. Code Ann. 31.45.010 et seq.  As of 2017, approximately 371 companies offer payday loan services.

Payday Loan Lending Laws in Washington

The maximum amount of payday loans in Washington stands at $700, or 30% of a borrower’s gross monthly income, whichever is the lesser amount. A borrower will have no more than 45 days to repay the loan, and rollovers are not permitted. Washington allows the maximum APR of 390%. A cash advance of $500 and less comes with the percentage rate of 15%, loans from $500 to $700 will have 10% rate.

As of January 2010, payday lenders are required to access a database shared by all state lenders containing the social security numbers and gross monthly income information of everyone person who has applied for a payday loan. This database serves to protect the lender from making loans to individuals with delinquent payments and the borrowers from being locked into a debt cycle where they are taking out more loans than they can afford to pay back.

A cash advance lender must set the due date of a small loan on or after the date of the borrower's next pay date. For example, if a borrower's next pay date is within seven days of taking out the loan, a lender would set the due date of a small loan on or after the borrower's second pay date after the loan was made. If the borrower becomes delinquent on repaying the loans, the lender can seek a judgement to get the loan repaid but cannot harass or intimidate the borrower into paying back the loan sooner. Borrowers are eligible for an installment plan of 90 days for debts below $400 and 180 days for larger debts. The repayment plan has no extra costs for the borrower if they notify the lender about their desire to use the plan before the loan is due.

Process

To apply for a payday loan in Washington, a potential borrower must meet these requirements:

  • Be at least 18 years old
  • Be employed for at least one month.
  • Have an active checking account
  • Be a U.S. citizen or permanent resident.

Lending Rules*

Lenders in the state of Washington are legally required to comply by the following limitations according to Wash. Rev. Code Ann. 31.45.010 et seq.:

Maximum Loan Amount:
$700 or 30% of gross monthly income, whichever is less
Maximum Length of Loan:
45 days
Maximum Finance Rate & Fees:
15%: first $500; 10%: remaining portion of the loan in excess of $500 up to the $700 maximum
Finance Charge for 14-day $100 Loan:
$15
APR for 14-day $100 Loan:
390%
Max # Outstanding Loans at One Time:
A company cannot hold a check or checks in an aggregate face amount of more than $700 plus allowable fees from any one borrower at any one time.
Rollovers Permitted:
None (cannot repay loan with proceeds of another)
Repayment Plan:
Borrowers are eligible for an installment plan at no extra cost if they notify lender on or before the loan is due. Plan is 90 days for debt of $400 or less and at least 180 days for larger debts.
Collection Fees:
$25 NSF fee (one time per instrument); collection costs (excluding attorney's fees, interest and damages)
Criminal Action:
Prohibited
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/55.

Regulatory Information

If you have a complaint against a Washington Cash Advance location you can contact your state regulator below:

Regulator:
Washington Department of Financial Institutions
Address:
Division of Consumer Services, PO Box 41200 Olympia WA 98504
Phone:
(360) 902-8700
Fax:
(360) 725-7827
Website:


Washington Lenders

Below you can find Washington payday loan lenders in the following cities:

Washington Statistics**

The following information is key demographic data for the state of Washington from the Census bureau.

Total Population:
7,288,000
Median Household Income:
$61,062
Poverty Rate:
12.2%
Median Gross Rent:
$1,014
High School Graduate or Higher:
90.4%
Bachelor's Degree or Higher:
32.9%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

Addressing short-term financial emergencies are the most responsible use of payday loans, provided a borrower makes and sticks to a repayment plan. The responsibility of understanding the cash advance loan terms and repaying the loan rests with the borrower, and while the lender database and repayment options provide some protection to both lender and borrower, potential users should understand the loan terms including applicable fees and repayment schedules before applying.  In the event a borrower feels a lender has engaged in unlawful activity, they should also contact the Washington Department of Financial Institutions.

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