Loan Options in Washington

Washington allows both payday loans and installment loans under separate licensing rules. The Department of Financial Institutions (DFI) oversees payday lenders under the Check Cashers and Sellers Act (RCW 31.45) and installment lenders under the Consumer Loan Act (RCW 31.04).

Payday loans come with caps on loan amounts, limits on how many loans you can hold at once, and mandatory installment repayment plans if you can't pay on time. Installment loans require licensing and disclosures but have fewer statutory caps on rates. For fee limits, maximum loan amounts, and APR ranges, visit the Washington Rates & Fees page.

Washington has several protections for small-dollar borrowers, enforced by DFI and written into state law:

• Eight-loan annual limit and single-loan cap - You can take out a maximum of eight payday loans per year, and only one can be outstanding at a time. This cuts down the risk of falling into a cycle where you borrow again before you've paid off the first loan.
• Mandatory installment repayment plan - Can't repay your payday loan on time? Licensed lenders must offer you an installment plan at no extra cost, at least once per year under RCW 31.45.084. It gives you a structured way out instead of piling on more fees.
• No rollovers permitted - A lender can't refinance an existing payday loan into a new one. That prevents the compounding fee trap that makes short-term loans far more expensive than they appear.
• DFI complaint process - If a lender violates state rules or engages in deceptive practices, you can file a complaint directly with DFI. It's a real enforcement path backed by the state regulator. File through the DFI complaint page.

Before sharing personal information with any lender, review the LendUp scams and safety guide and verify the lender's license through the DFI license lookup tool.