Washington payday loan laws are among the strictest in the country, and they exist to keep short-term borrowing from spiraling into long-term debt. The rules live in RCW 31.45 and are enforced by the Washington Department of Financial Institutions (DFI).
Quick answer: Washington payday loans are capped at $700 or 30% of your gross monthly income, whichever is lower. Fees are 15% on the first $500 and 10% above that, you may take no more than 8 loans in 12 months, and every lender must be licensed by the Washington DFI.
What the law limits
- Loan size: $700 or 30% of your gross monthly income, whichever is lower.
- Fees: 15% on the first $500 borrowed and 10% on any amount above $500.
- How many: no more than 8 payday loans in any rolling 12-month period, tracked by a real-time statewide database.
- One at a time: a single licensed lender may only have one open payday loan with you.
Your built-in protections
If you cannot repay on time, you have the right to a no-cost installment payment plan under RCW 31.45.084. Loans in Washington also carry a one-day right to cancel, and lenders must disclose the annual percentage rate (APR) before you sign. A typical two-week payday loan carries an APR around 391%.
FAQ
Is payday lending legal in Washington?
Yes. It is legal but tightly regulated under RCW 31.45, and lenders must hold a Washington DFI license.
What is the most I can borrow?
The lower of $700 or 30% of your gross monthly income across all payday loans you hold at once.
Who do I contact with a complaint?
The Washington Department of Financial Institutions handles complaints and license lookups at dfi.wa.gov.
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.