A payday loan is a small, unsecured, high interest, short-term cash loan. In most cases, consumers write a post-dated, personal check for the advance amount, plus a fee. The lender holds the check for the loan period and then deposits it, or the customer returns with cash to reclaim the check.
Quick Facts about Payday Loans
- You may only borrow a total of $700 or 30% of your gross monthly income, whichever is less.
- Your information will be registered in a state-wide database, ensuring that all payday lenders have your most up-to-date loan information.
- You may only take 8 payday loans per 12-month period.
- If you are unable to repay your loan before your loan is due, you may request an installment plan with no additional fees.
- If you currently have an installment plan you may not receive another loan.
- Lenders may not harass or intimidate you when collecting a loan. If you are harassed, contact DFI and file a complaint.
Who Licenses and Regulates Payday Lenders in Washington?
In Washington State, the Washington State Department of Financial Institutions (DFI) licenses and regulates payday lenders and the payday loan industry. You can verify the license of a payday lender in Washington State by calling 1-877-RING-DFI (746-4334) or verifying a license online .
Have a Complaint against a Washington Payday Lender?
Maximum Loan Amounts & Terms in Washington
Maximum Loan Amount: $700 or 30% of your gross monthly income, whichever is less
Maximum Fee: 15% on the first $500 and 10% above $500.
Internet Payday Lenders
Internet payday lenders that do business with Washington residents must be licensed by DFI and adhere to Washington's loan limits and terms. Before
doing business with an internet payday lender, make sure they are licensed by DFI.
Checklist - Before Taking out a Payday Loan
Although a payday loan may be a convenient short-term solution, it is inappropriate for long-term cash needs.
- Verify the License of the Payday Lender
Local organizations across Washington are available to help you with your financial situation. Many of these organizations offer help with budgeting, credit repair, debt repayment, and more. Contact your local consumer credit counseling service or asset building coalition for more information.
Plan for the future by making a realistic budget to help avoid the need to borrow for emergencies and unforeseen expenses.
Category: Payday loans