Washington payday loan fees are capped by statute at 15% of the first $500 borrowed plus 10% of any amount above $500. There are no add-on charges beyond that under RCW 31.45.073.
Quick answer: Washington payday lenders may charge 15% on the first $500 and 10% on any amount above $500. On a maxed-out $700 loan that is $95 in fees, and a typical two-week loan works out to about a 391% APR.
The real dollar cost
- $300 loan: 15% = $45 in fees.
- $500 loan: 15% = $75 in fees.
- $700 loan: $75 on the first $500 + $20 (10% of $200) = $95 in fees.
What that means as APR
Fees look small until you annualize them. A $100 loan for 14 days at the 15% fee equals roughly a 391% APR. Because Washington caps the term at 45 days, a longer term lowers the APR somewhat, but short-term payday credit is still expensive compared with a credit-union PAL capped near 28%.
FAQ
Can a lender add other fees?
No. Washington law limits the charge to the 15%/10% tiers; extra fees on a payday loan are not allowed.
Is there a fee to set up a payment plan?
No. The statutory installment plan under RCW 31.45.084 must be offered at no additional cost.
Why is the APR so high?
Because a flat fee over a very short term annualizes to a large percentage; that is why alternatives are usually cheaper.
This article is educational and is not financial or legal advice. Loan laws change; always confirm the current rules and verify that any lender is licensed with the Washington Department of Financial Institutions (DFI) before you borrow.