What a payday loan costs — before Washington’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Washington
- Rate cap
- Small licensed payday loans are capped by a fee schedule; the small-loan law makes loans from unlicensed lenders uncollectable.
- Key law
- Washington Consumer Loan Act / small-loan statute (RCW 31.45), enforced by the Department of Financial Institutions (DFI).
- Enforcement
- DFI issues brand-by-brand "Not Licensed in Washington State" alerts naming specific tribal lenders — Crow Creek Sioux (River Valley, RiseUp Lending), Fort Belknap (Bright Lending, GreatPlains Finance), Big Valley Pomo (Little Lake Lending), Menominee (South Branch Lending) and more.
Washington’s DFI publicly names unlicensed tribal lenders one brand at a time and states their Washington loans "cannot be collected."
What it means for a Washington borrower
A loan made by an unlicensed lender to a Washington resident cannot be collected, and the lender cannot sue on it. Tribal lenders operate but are repeatedly flagged as unlicensed, undercutting enforceability.
If you already have a payday loan in Washington
A loan that violates Washington’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check the lender against DFI alerts and call 1-877-746-4334 (RING-DFI).
- An unlicensed loan is legally uncollectable in Washington.
Cheaper first — try these before a payday loan in Washington
Payday Loans and tribal lenders in Washington
Many online lenders that market payday loans to Washington residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Washington residents and how state law applies to them, see the Washington tribal-lending page.
Tribal loans in Washington →Frequently asked questions
Are payday loans legal in Washington?
In Washington, payday loans are legal but tightly limited. The state caps loan size, fees or rollovers, so a legal payday loan looks different — and costs less — than the ~400% APR norm, and any lender exceeding those limits is out of compliance.
What is the maximum payday loan rate in Washington?
Small licensed payday loans are capped by a fee schedule; the small-loan law makes loans from unlicensed lenders uncollectable.
What can I do about a payday loan I already have in Washington?
Because Washington restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check the lender against DFI alerts and call 1-877-746-4334 (RING-DFI). This is general information, not legal advice.