District of Columbia · checked October 24, 2026

Payday loans in District of Columbia: the rules and your way out

Typical payday loans not allowed

The District has no payday loan law: licensed check cashers may not advance money on a post-dated check, and consumer loans are capped at 24% a year, with money lenders' interest required to include all fees.

Law: D.C. Code § 26-319(b) (check cashers; post-dated checks); §§ 26-901 to 26-912 (money lenders); §§ 28-3301, 28-3303, 28-3314 (interest and usury). Code of the District of Columbia as published by the D.C. Council (code.dccouncil.gov), read 2026-10-24

District of Columbia's rules, line by line

Fee or rate cap: Interest on a written instrument for the payment of money may not exceed "24% per annum" (D.C. Code § 28-3301(a)). Licensed money lenders may not charge more than the lawful rate set by Chapter 33 of Title 28, and "this charge shall cover all fees, expenses, demands, and services of every character" (D.C. Code § 26-905).
State loan database: No
Limits on collection: A creditor who contracts in writing for more than the permitted rate forfeits the whole of the interest (D.C. Code § 28-3303). A money lender charging more than the lawful rate forfeits all interest contracted for or received and must also forfeit to the borrower an amount equal to one-fourth of the principal, deducted from the principal owed (D.C. Code § 26-905). A borrower harmed by a violation of the interest-rate chapter may sue in D.C. Superior Court for attorney's fees, actual and punitive damages, or other relief (D.C. Code § 28-3314).
Other rights: Licensed check cashers may not "at any time cash or advance any monies on a post dated check" (D.C. Code § 26-319(b)). Loan agreements may not waive borrower rights under the interest-rate chapter (D.C. Code § 28-3312(6)). Lending money at more than 6% a year in D.C. requires a money lender license (D.C. Code § 26-901).

If you are behind on a payday loan in District of Columbia

Check whether the loan was legal to make. District of Columbia does not allow payday loans at typical payday prices. If a lender charged more than the state's limit, report it to the District of Columbia Department of Insurance, Securities and Banking (DISB) through its complaint page.
Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

D.C. Code § 26-319 Limitations on business (check cashers), read 2026-10-24
D.C. Code § 28-3301 Rate of interest expressed in contract, read 2026-10-24
D.C. Code § 28-3303 Usury defined, read 2026-10-24
D.C. Code § 28-3314 Right of action, read 2026-10-24
D.C. Code § 26-901 Money lender license required, read 2026-10-24
D.C. Code § 26-905 Maximum rate of interest (money lenders), read 2026-10-24
DISB: Beware of Payday Loans, read 2026-10-24
DISB: Consumer Services Division, read 2026-10-24
DISB: Verify That a Financial Institution or Representative Is Licensed, read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.