The Washington payday installment plan is a powerful borrower right: when repayment day arrives and you cannot pay, you can convert the balance into a no-cost installment plan instead of rolling over or defaulting. This right is set out in RCW 31.45.084.
Quick answer: Under RCW 31.45.084, if you cannot repay a Washington payday loan on the due date you may request an installment payment plan at no extra charge. You must ask before or on the day the loan is due, and you cannot take a new payday loan while on the plan.
How to use it
- Ask the lender for the installment plan on or before the due date.
- The plan is provided at no additional fee or interest.
- Terms are generally 90 days for smaller loans and up to 180 days for larger balances.
- You cannot open a new payday loan while a plan is active.
Why it beats a rollover
Washington does not allow fee-generating rollovers the way looser states do. The statutory installment plan spreads the same balance over time without piling on new charges, which is the single best tool for avoiding a debt cycle.
FAQ
Does the plan cost extra?
No. By law the installment plan must be offered at no additional cost.
When must I request it?
On or before the loan’s due date; ask the lender directly and get it in writing.
Can I still get another loan?
Not while the plan is active; you must finish it before taking a new payday loan.
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.