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Washington · checked October 24, 2026

Payday loans in Washington: the rules and your way out

Payday loans allowed, with limits

Licensed lenders with a small loan endorsement may make payday loans of up to $700 or 30% of gross monthly income, with a cap of 8 loans per 12 months, and must convert a loan to a no-fee installment plan on request.

Law: RCW 31.45.073, .082, .084, .086, .093, .105; WAC 208-630. RCW as published by the WA Legislature (lawfilesext.leg.wa.gov), accessed 2026-10-24; RCW 31.45.073 and .084 last amended 2009 c 510. WAC 208-630 chapter page shows 'Last Update: 1/28/25'.

Washington's rules, line by line

Largest loan
$700 or 30% of the borrower's gross monthly income, whichever is lower, for one loan or all outstanding loans from all licensees (RCW 31.45.073(2)).
Shortest term
Due date must be on or after the next payday, or the second payday if the next one is within 7 days (RCW 31.45.073(2)).
Longest term
45 days, unless both parties agree to extend at no additional fee or interest (RCW 31.45.073(2)).
Fee or rate cap
Interest and fees together may not exceed 15% of the first $500 of principal and 10% of principal over $500 (RCW 31.45.073(5)).
Renewals and rollovers
A lender may not let a borrower use a new small loan to pay off an existing small loan from the same lender or affiliate (WAC 208-630-544).
Waiting period between loans
No new loan while in default on another small loan until paid or 2 years pass; no new loan while in an installment plan until paid or 2 years pass (RCW 31.45.073(2)-(3)).
Loans at once
No numeric cap on count at one time, but all outstanding loans combined must stay within $700 / 30% of gross monthly income; no more than 8 loans from all licensees in any 12 months (RCW 31.45.073(2), (4)).
Payment plan if you cannot pay
Yes. If the borrower says they cannot repay, the lender must say they can convert to an installment plan and must do so on request, at no fee or interest: at least 90 days for loans up to $400, at least 180 days for larger loans; prepay any time; postdated checks returned (RCW 31.45.084; WAC 208-630-531). A one-time $25 default fee is allowed if the plan is defaulted (RCW 31.45.084(3); WAC 208-630-549).
State loan database
Yes. Statewide small loan database maintained for DFI (RCW 31.45.093); DFI says lenders report every loan to it.
Limits on collection
One-time returned-check fee set by rule: no more than $25, and no more than $25 total over the life of a loan (RCW 31.45.082(1); WAC 208-630-542). In a civil suit, collection costs only, no attorney fees or other damages under RCW 62A.3-515. No threats of criminal prosecution; no visits to home or work unless invited; harassment presumed above 3 contacts a week, more than 1 a week at work, or calls 9 p.m.-7:30 a.m. (RCW 31.45.082).
Other rights
Right to rescind at no charge by the close of the next business day by returning the principal (RCW 31.45.086). A small loan made without a required small loan endorsement, including online, is uncollectible and unenforceable (RCW 31.45.105(1)(d), (3)).

If you are behind on a payday loan in Washington

  1. Ask for the payment plan before the due date. Washington law gives borrowers a way to repay in installments. The details are in the table above. Ask in writing and keep a copy.
  2. 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.
  3. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
  4. 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

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.

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