What a title loan costs — before Washington’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Washington
- Rate cap
- 25% per annum simple interest, a hard cap (RCW 31.04.105(1); WAC 208-620-235), plus a limited origination fee (4% of the first $20,000, 2% above) and enumerated late/third-party fees. No provision authorizes triple-digit APR.
- Key law
- No dedicated title-loan statute. A title-secured consumer loan falls under the Consumer Loan Act, RCW ch. 31.04 (implemented by WAC ch. 208-620); rate ceiling at RCW 31.04.105 / WAC 208-620-235. The check-casher/payday chapter (RCW ch. 31.45) governs deferred-deposit loans, not title lending.
- Enforcement
- The Washington Department of Financial Institutions (DFI), Division of Consumer Services, licenses and examines Consumer Loan Act companies. There is no separate title-lender license; a title lender would need a CLA license and be bound by the 25% cap.
Washington’s Consumer Loan Act caps licensed lenders at 25% per annum simple interest (RCW 31.04.105(1); WAC 208-620-235), and the state has no authorizing title-loan statute — so high-cost single-payment title lending cannot legally be made.
What it means for a Washington borrower
You cannot get a legal high-cost car-title loan in Washington. Any lawful loan secured by a vehicle title must be made by a DFI-licensed Consumer Loan Act company and is capped at 25% APR simple interest — far below the 100%+ rates the title-loan model requires. Washington is not on the CFA’s list of states permitting triple-digit car-title loans.
If you already have a title loan in Washington
A loan that violates Washington’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Washington — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Washington attorney general and the CFPB.
- Ask whether the balance is even collectable under Washington law before you pay a collector.
Cheaper first — try these before a title loan in Washington
Title Loans and tribal lenders in Washington
Many online lenders that market title 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 title loans legal in Washington?
In Washington, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Washington?
25% per annum simple interest, a hard cap (RCW 31.04.105(1); WAC 208-620-235), plus a limited origination fee (4% of the first $20,000, 2% above) and enumerated late/third-party fees. No provision authorizes triple-digit APR.
What can I do about a title loan I already have in Washington?
Because Washington effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Washington — many high-cost online lenders are not. This is general information, not legal advice.