Payday loans in Washington

Washington payday-loan rules: the direct answer

As of August 27, 2026, Washington permits small payday loans through a lender licensed by the Department of Financial Institutions (DFI) with a small-loan endorsement. The maximum principal is $700 or 30% of the borrower’s gross monthly income, whichever is lower. The termination date normally cannot be more than 45 days after origination, and the lender must set the due date on or after a qualifying pay date. A website promising “cash before payday” is not proof that the transaction fits these limits.

Washington caps the fee or interest charged on a small loan at 15% of the first $500 of principal and 10% of any principal above $500, calculated under the statutory aggregate rules. A borrower may receive no more than eight small loans from all licensees in a rolling 12-month period. Every small loan is reported to a statewide electronic database, which enforces the amount, income and frequency limits across lenders. The fee ceiling is not an affordability recommendation.

DFI licensing and unlicensed online lenders

A small-loan endorsement is required for a licensed check casher or check seller that advances money on a postdated check or electronic equivalent. The endorsement is required for each location, and Washington law applies to online activity as well as storefront transactions. Use DFI’s Verify a License tool and search the exact legal entity, not only a trading name or comparison brand.

DFI warns that unlicensed online lenders may charge rates outside Washington limits, misuse personal information or operate from another state or country. A small loan made by a person who should be licensed but is not licensed is generally unenforceable in Washington under RCW 31.45.105. Do not treat that protection as a reason to borrow; preserve the agreement and ask DFI about the particular facts rather than paying a third party that promises a guaranteed cancellation.

Tribal-lender sites require careful classification. DFI explains that lenders owned by federally recognized tribes may not be licensed or regulated by Washington agencies, which can limit the state’s complaint assistance. Identify the legal lender, governing law, dispute address and payment processor. A tribal statement, bank-partner logo or arbitration clause does not by itself establish whether a transaction is enforceable or compliant.

$700 or 30% income limit, 45-day term and eight-loan rule

The principal limit applies to one small loan and to the outstanding principal balance of all small loans made by all licensees to the same borrower at one time. A lender cannot use several affiliates to create more than $700 of outstanding principal or to bypass the 30% gross-monthly-income test. Ask how the lender calculated income and whether another balance appears in the Washington database before accepting a second offer.

The due date must be on or after the borrower’s next pay date. If that pay date is within seven days of origination, the due date moves to at least the second pay date. The termination date is ordinarily no more than 45 days after the loan begins, including weekends and holidays, unless the parties extend the term with no additional fee or interest. Write down origination, pay and termination dates rather than relying on a text reminder.

The eight-loan rule counts all licensees during any 12-month period, not just one storefront or brand. The database is designed to stop a new loan once the limit is reached, but errors can occur. Keep the transaction number, disclosure, payment history and confirmation that the lender reported the loan. A lender that asks you to apply through an affiliate to reset the count should be treated as a compliance warning.

Fee calculation, APR context and the written agreement

For a principal of $500 or less, the maximum statutory aggregate fee or interest is 15% of principal. On the portion above $500, the aggregate limit is 10%. A $500 loan therefore has a maximum charge of $75; a $700 loan has a maximum charge of $95 under the tiered formula. Confirm which charges are included, and do not accept a separate membership, lead, verification, instant-transfer or required-insurance amount that changes the all-in cost.

A 14-day, $500 loan at the maximum fee produces a very high annualized price even though the charge is a single percentage. Washington DFI gives an APR example of 391% for that transaction. Compare the dollars received, charge, debit or check amount and exact days. A marketing page that shows only “15%” hides the effect of the short term and should be checked against the federal APR disclosure.

The lender should provide the fee schedule, due date, repayment method, check or electronic authorization, cancellation information and a copy of the contract. A licensee may accept only one postdated check per small loan and cannot take property as collateral. Save every screen and version of the agreement in case the lender, servicer or payment processor changes after approval.

Cancellation and the no-fee installment plan

Washington borrowers can change their mind and cancel a payday loan within one day. Follow the contract and DFI instructions for returning the principal or loan-proceeds check, and obtain a dated receipt. The lender cannot charge a rescission fee and should return any postdated check or electronic equivalent held as security. Do not assume that refusing an ACH debit, closing an account or sending a text automatically completes cancellation.

Before default, a borrower is entitled to convert a small loan into a written installment plan. A loan of $400 or less must have at least 90 days; a loan above $400 must have at least 180 days. Payments should be substantially equal and distributed through the plan, and the borrower may prepay without an additional penalty, fee or charge. The installment plan carries no fee to the borrower under DFI’s current guidance.

While an installment plan is active, the borrower cannot take a new payday loan until the plan is paid in full or the statutory waiting condition applies. Ask for the plan before the due date, not after default, and keep the schedule, payment receipts and updated balance. The plan changes timing; it does not erase principal or make a high-cost product suitable for recurring expenses.

Default, collection conduct and complaints

Washington prohibits a lender from making a new small loan to a borrower in default on another small loan until the earlier statutory condition is met. A lender also may not make a loan to fund repayment of an old loan from the same lender or affiliate. If a debit fails, request a written balance and payment option; do not accept threats that a returned check will lead to criminal charges.

DFI’s consumer guidance says payday lenders cannot harass borrowers or threaten criminal charges to collect. Keep call logs, voicemails, emails, bank notices and any collection letter. Contact the company in writing first, then submit a documented complaint to DFI with copies rather than originals. A bank dispute, identity-theft report or court deadline may require separate and faster action.

Washington borrower verification checklist

A responsible Washington comparison identifies a licensed creditor, an accurate database count, a transparent tiered fee and a payoff that fits the next income cycle. If the proposal depends on an affiliate reset, recurring emergency borrowing or an unexplained ACH debit, pause before accepting funds.

1. Verify the lender’s DFI license and small-loan endorsement, including for an online provider serving Washington residents.
2. Confirm principal is no more than $700 or 30% of gross monthly income, whichever is lower, and check the statewide database history.
3. Check the pay-date and 45-day termination rules, the eight-loan rolling 12-month limit and any affiliate relationship.
4. Recalculate the tiered charge: 15% of the first $500 and 10% of the portion above $500, with every mandatory cost included.
5. Record the one-day cancellation process and ask for a no-fee installment plan before default; keep receipts and the updated balance.
6. If the lender is unlicensed, tribal or refuses to identify the creditor, stop sharing financial access and contact DFI with preserved evidence.

Washington payday-loan FAQ

Question 1How much can I borrow with a Washington payday loan?

Answer

The maximum principal is $700 or 30% of the borrower’s gross monthly income, whichever is lower. The same outstanding-principal limit applies across licensees.

Question 2How much is the Washington payday-loan fee?

Answer

The statutory aggregate charge is capped at 15% of the first $500 of principal and 10% of the portion above $500. A $700 loan therefore has a maximum tiered charge of $95 before considering the contract’s exact permitted items.

Question 3How many payday loans can I get in Washington?

Answer

A borrower may receive no more than eight small loans from all licensees in any rolling 12-month period. Licensees report loans to a statewide database to enforce the rule.

Question 4Can I get a payment plan in Washington?

Answer

Before default, a borrower is entitled to a written installment plan. It must run at least 90 days for a loan of $400 or less or at least 180 days for a larger loan, with no installment-plan fee and no prepayment penalty.

Question 5Where can I verify or report a Washington payday lender?

Answer

Use Washington DFI’s Verify a License tool and submit a complaint with the agreement, advertising, payment records and timeline. DFI’s assistance may be limited for unlicensed or tribal entities, so identify every participant.

Official Washington