Washington Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in Washington and what amounts, interest rates and repayment terms are set by the state's Legislation.

Legal Payday Loans Online for Washington residents Apply online

Washington Payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

Maximum Loan Term

Maximum Loan Term

It’s the maximum period of time within which you are to allowed to pay off your loan.

45 day(s)
Average APR

Average APR

The average percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

<$500 = 15%;
>$500 = 10%

To be on the safe side, it's always better to be aware of your rights. Study the laws, rules and regulations concerning Payday Loans and other short-term cash advance in Washington. 

Compare top legit Payday Lenders in Washington:

Table of Contents:

Are Payday Loans legal in Washington?

Washington Payday Loan Terms and Amounts

Washington Payday Loans online laws

Washington Payday Loans interest rates, fees and other finance charges

Washington Payday Loans direct lenders regulations

Washington Payday Loans consumer information

Legitimate Payday Loans online with NO credit check in Washington

Do Washington laws allow Payday Loans for bad credit borrowers?

Legit Payday Loans in Washington collection practices

Washington Payday Loans legislation latest changes

Washington Payday Loans historical background

Consider Washington Payday Loans alternatives to get instant cash

Are Payday Loans Legal in Washington?

Short-term Payday Loans are Legal in the state of Legal and are mostly regulated through Wash. Rev. Code Ann. 31.45.010 et seq. .

2017 Payday Lending Report.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.

Read more: Payday Loans in Washington

The main Payday Loan requirements in Washington are:

  • Washington residence
  • Being of legal age
  • An active bank account
  • A valid phone number
  • A proof of income

State law prohibits a lender from making a payday loan to you if any of the following is true of you:

  • You currently have one or more outstanding payday loans totaling $700 or equal to 30% of your gross monthly income, whichever is less;
  • You currently have an installment plan to pay off a previous payday loan;
  • You’ve taken out 8 loans in the last 12 months;
  • You’re in default on another payday loan.

Any eligible Washington resident can apply for $700 Payday Loan amount. It should be repaid within 45 day(s). Earlier payments don’t contemplate any additional penalty fees. The interest rates are maximum , but on average direct lenders charge 400% APR. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

Washington Payday Loan Terms and Amounts 

Washington residents who are eligible for a Payday Loan can get up to $700 cash advance per contract. Under Washington law, your loan term must be your next pay date or the pay date after that if your first payment date is within 7 days of the date the loan is made. The loan term cannot be longer than 45 day(s) unless you enter into an installment plan or otherwise agree to a longer loan term.

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Washington.

If a Payday cash advance is not enough, there are always other options to receive the necessary funds in Washington: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Compare the amounts and costs of various cash advances available for emergency funding in Washington:

loans washington

Washington Payday Loans online laws 

Payday loans are made by storefront lenders, check cashers, pawnshops, credit unions, banks and Internet-based providers. In Washington, anyone providing a payday loan, including Internet payday lenders, must be licensed by the Washington State Department of Financial Institutions (DFI).

Payday loans from both storefront and online lenders are Legal in the state of Washington. But the companies should operate according to the Washington Department of Financial Institutions regulations.

Though there're some limits on how payday loans direct lenders should run businesses, still there are some. Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn't affect your credit score. 

Washington Payday Loans interest rates, fees, and other finance charges 

The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Washington is .

Besides, the total cost of a Payday Loan includes some additional fees. Washington lending rules allow to charge None.

The following chart shows the maximum amount that a payday lender can charge you.

payday loan charges

The law obligates Iowa Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree to acknowledge the notification by signing the contract.

Washington Payday Loans direct lenders regulations 

According to Washington payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me.

Now, payday lenders are operating online to make it faster, easier and more convenient for borrowers to get the necessary funds. However, it is often illegal for online payday lenders to make loans to Washington consumers. Payday lenders, or direct deposit lenders, must be licensed by the state in order to run a lending business in Washington and to be licensed, the lender is required to have a physical location in the state. Washington has put these laws in place to prevent consumers from getting scammed on the web, and you should apply for online payday lenders loans with caution.

But Washington Payday Loan lenders are prohibited to threaten you for late payments or loan default and conduct any criminal actions against you.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Washington state law.

Washington Payday Loans consumer information 

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Washington. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions None
Cooling-off period None
NSF fee None
Criminal actions Prohibited

Look for more detailed information on the official Iowa state regulator website - Washington Department of Financial Institutions.

Legitimate Payday Loans Online with NO credit check in Washington 

Looking for a legal Payday Loan with No credit check in Washington? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian and TransUnion.

If you don’t want to damage your credit history, Washington law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Washington Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Washington law allow Payday Loans for bad credit borrowers?

The average credit score in Washington is 683, placing it in the good range. But it doesn't mean that those who have a worse credit can't apply for a Payday Loan in Washington. 

  • First of all, there're a lot of legit direct lenders in Washington providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Washington collection practices 

When collecting or attempting to collect a payday loan, the lender may not harass or intimidate you. The lender is restricted from contacting you or your spouse more than 3 times in one week and may not contact you at home between the hours of 9 p.m. and 7;30 a.m.
If you feel that you have been harassed by a payday lender during their attempt to collect on your loan, contact the Department of Financial Institutions to file a complaint.
If you do not repay the loan by the time the loan is due, the lender is permitted to charge you a one-time fee of $25 for a returned check fee if they deposited your check and it was returned unpaid. If the payday lender obtains a judgment against you as a result of your returned check, the lender may obtain the cost of the collection but may not collect attorney's fees if the collection is conducted under Title 62A.

If you think that your payday lender violates the Washington Payday Loans law, you may file a written complaint with Washington Department of Financial Institutions. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

Washington Payday Loans latest changes 

Beginning January 1, 2010, before making a payday loan to you, your payday lender is required by Washington law to access a database that contains detailed information about payday loans made to Washington residents by all lenders licensed to do business in Washington. You will provide the lender with your social security number, or equivalent identification number, and gross monthly income information and the database will determine whether you are eligible for a payday loan, and if so, for what amount. If you are not eligible for a payday loan, the lender will provide you with the toll-free telephone number of the database provider, so you can call and find out the specific reason for your loan denial.

Washington Payday Loans historical background 

The history of Payday Loans in Washington
1995 The Check Cashers & Sellers Act (RCW 31.45) were the first laws passed to regulate Payday lending in Washington.
2006 The Payday Loans for the military were capped at 36% APR.
January 1, 2010 Rev. Code Ann. 31.45.010 et seq. limited the number of consequent payday loans to 8 per year.
2010 - 2015 The number of payday lenders reduced in the state.
2015 It was attempted to make Payday lending regulations not so strict but in vain.
June 2, 2016 A Payday Loan Rule was proposed.
2019 No more changes have been offered so far.

Washington Payday Loan alternatives

If you're looking for instant cash advance in Washington but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for a Washington Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Take out a Car Title Loan if you own a vehicle to use as collateral.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Consider borrowing from a bank or credit union, The Credit Union for Washington, BECU credit union, for example.
  • Qualify for one of Federal or Washington government assistance programs: Washington Basic Food Program, Temporary Assistance for Needy Families (TANF), Assisted Living Facility / Adult Family Home and many others depending on your needs.

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