News About the Ever-Changing Payday Advance Industry
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Yes — payday loans are legal in Washington, but among the most tightly limited in the country. You can borrow at most $700, or 30% of your gross monthly income (whichever is less), take no more than 8 loans a year (tracked by a statewide database), and you can convert any loan into a free installment plan on request. The DFI oversees lenders.
| Status | Legal — licensed & tightly regulated |
|---|---|
| Maximum loan | $700 or 30% of gross monthly income, whichever is less |
| Maximum fee | 15% on the first $500, 10% on amounts above $500 |
| Typical APR | ≈391% on a 14-day $100 loan (smaller loans cost more) |
| Loan term | Up to 45 days |
| Loans per year | No more than 8 in any 12-month period |
| Rollovers | Prohibited |
| Installment plan | Free on request — 90+ days (loans ≤$400) or 180+ days (over $400) |
| Statewide database | Yes — enforces the $700/income and 8-loan limits |
| Regulator | Department of Financial Institutions (DFI) |
| Law | RCW 31.45 (Check Cashers and Sellers / Small Loans) |
Washington charges 15% on the first $500 and 10% above that. On a $100 two-week loan that's $15 — about a 391% APR; on the $700 maximum the fee is $95. The percentage is highest on the smallest, shortest loans.
| Amount borrowed | Fee | Total repaid |
|---|---|---|
| $100 | $15 | $115 |
| $300 | $45 | $345 |
| $500 | $75 | $575 |
| $700 | $95 | $795 |
Payday lenders in Washington are licensed by the Department of Financial Institutions. To report a violation or an illegal lender, use the online complaint form.
Before borrowing, compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller. See our guide to payday loans and alternatives.
A lender can garnish wages in Washington only after it sues and wins a court judgment, and federal law then caps how much can be taken. Washington operates a real-time payday-loan database, so state limits on how many loans you can hold at once are enforced across all lenders. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Washington State Department of Financial Institutions (DFI) before borrowing. Last reviewed 2026.
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Yes. They are legal and regulated under RCW 31.45, overseen by the Department of Financial Institutions, with some of the strictest limits in the country.
At most $700, or 30% of your gross monthly income — whichever is less.
No more than 8 in any 12-month period, enforced across all lenders through a statewide database.
Yes. You can convert any payday loan into a free installment plan on request — at least 90 days for loans of $400 or less, or 180 days for larger loans.
Washington
The District’s attorney general yesterday proposed legislation to limit high fees charged by financial businesses, such as those that provide payday advances, that cater to low-income customers.
Washington
Legislation in Washington to reform the payday loan lending industry appears to be dead. Oregon Public Broadcasting correspondent Austin Jenkins reports on what happened behind-the-scenes.
Washington
Despite much sound and fury, it appears legislators will do nothing this year to crack down on controversial Washington payday loan lenders.