State reference · WA
Washington lending rules
Washington has 281 Census places covered on Paydayloaning, with a combined estimated population of 5,126,107. Payday and small-loan terms in Washington are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.
The verdict
Licensed
Source: Washington State Department of Financial Institutions (DFI) · as of 2026-09-16
- Maximum rate
- 12% per annum, or four points above the Federal Reserve bill rate, whichever is higher (RCW 19.52.020)
- Washington State Legislature (RCW)
- Licensing
- Consumer Loan Company license required (Consumer Loan Act, RCW 31.04.035)
- Washington State Legislature (RCW)
- Regulator
- Washington State Department of Financial Institutions (DFI)
- Washington State Department of Financial Institutions (DFI)
Rules are quoted from the cited sources. How payday lending is regulated.
Key rules for borrowers in Washington
Quoted from the statute, regulator or agency named in each row.
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 12% per annum, or four points above the Federal Reserve bill rate, whichever is higher (RCW 19.52.020) Source says: any rate of interest shall be legal so long as the rate of interest does not exceed the higher of: (a) Twelve percent per annum |
Washington State Legislature (RCW) as of 2026-09-16 |
| Payday lending status | Licensed; small loans capped at $700 or 30% of monthly income, max 45 days, fees 15% on first $500 and 10% above (RCW 31.45) Source says: Payday lenders must be licensed by DFI — including online lenders that do business with Washington residents. |
Washington State Department of Financial Institutions (DFI) as of 2026-09-16 |
| Small-loan / installment lender licensing | Consumer Loan Company license required (Consumer Loan Act, RCW 31.04.035) Source says: No person may engage in any activity subject to this chapter without first obtaining and maintaining a license in accordance with this chapter. |
Washington State Legislature (RCW) as of 2026-09-16 |
| State lending regulator | Washington State Department of Financial Institutions (DFI) Source says: DFI licenses and regulates financial institutions and service providers in Washington. |
Washington State Department of Financial Institutions (DFI) as of 2026-09-16 |
Cities in Washington
All Washington citiesWe cover 281 Census places in Washington.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.