Payday Loans in Washington
Page last reviewed: March 31, 2026 · Reviewed for accuracy by LendUp
Are payday loans legal in Washington? Yes - Washington licenses payday lenders under the Check Cashers and Sellers Act. The state sets caps on loan amount, term, and fees - and limits you to 8 payday loans in any 12-month period.
You can request an installment plan: If you can't repay your payday loan by the due date, Washington law gives you the right to convert it into an installment plan at no additional fee. Ask for this before you default - not after.
How to verify: The Washington DFI licenses payday lenders through NMLS Consumer Access. Call 1-877-RING-DFI (746-4334) to confirm a lender's license. Full steps below.
To qualify:
- Credit: Payday lenders in Washington typically don't run traditional credit bureau checks, but some may use alternative verification. Ask what they'll check before you authorize it.
- Basics: You'll typically need to be 18+, have a government-issued ID, verifiable income, and an active checking account.
- Military households: If you or your dependent are covered by the Military Lending Act, your total loan cost is capped at 36% per year (called the Military Annual Percentage Rate), which may limit available offers.
LendUp isn't a lender - we connect you with providers. Offers aren't guaranteed, and we may earn compensation if a loan is funded.
How to Apply
Steps
- Submit one request through LendUp or contact a licensed lender directly.
- Gather what you'll need: government-issued ID, proof of income (pay stubs, benefit letters, bank statements, or tax returns for self-employed borrowers), and your bank account details.
- Review the offer: confirm the fee in dollars, the APR, the repayment date, and the total amount you'll owe. Make sure the loan doesn't exceed the state's maximum or 30% of your gross monthly income.
- Verify the lender holds an active Washington Check Casher license with a Small Loan Endorsement through NMLS Consumer Access before you sign. Save a copy of the signed agreement.
What to expect
- One-day rescission right: Washington law gives you the right to change your mind about the loan within one business day. If you rescind, no transaction fee is charged and it doesn't count toward your annual loan limit.
- Income-based cap: Your loan cannot exceed the state's dollar maximum or 30% of your gross monthly income, whichever is less. The lender should verify your income before making the loan. If they don't ask about your income, that's a red flag.
- No new loan to pay off an old one: Washington law prohibits you from using a new payday loan to pay off an existing loan from the same lender or an affiliate. If a lender suggests this, they may be violating state law.
- No fee to cash the check: If the lender disburses your loan as a check, they cannot charge you a fee to cash it. If an affiliated check casher tries to charge you, report it.
Verify a Payday Lender in Washington
Before sharing your bank details, confirm the lender holds an active Check Casher license with a Small Loan Endorsement from Washington DFI.
NMLS Consumer Access · DFI License Verification
Phone: 1-877-RING-DFI (746-4334)
- Go to NMLS Consumer Access. Search by the company's NMLS number or legal name.
- Confirm Washington is listed under State Licenses with a Check Casher license that includes a Small Loan Endorsement.
- Confirm the company name on the license matches the name on your loan documents. The lender should display the license at their location.
- If you can't find the lender, call DFI at 1-877-RING-DFI (746-4334) or (360) 902-8700 before you proceed.
If a lender can't be verified, stop before paying or sharing more information. Under Washington law, any payday loan from an unlicensed lender is uncollectable and unenforceable - meaning you may not be required to repay it, and the lender cannot take legal action against you in Washington to collect. Internet lenders serving Washington residents are required to hold the same license as storefront lenders.
To file a complaint, visit the DFI complaint page or call 1-877-RING-DFI. You can also file with the CFPB.
LendUp works to present offers from providers that meet our marketplace requirements, but you should always verify the lender's current Washington license before accepting any offer.
Before You Sign
Your rights in Washington
- Fee caps apply: Washington caps the fee a payday lender can charge, with a tiered structure based on the loan amount. For the specific caps, see our rates and fees page. Lenders are required to display their fee charts at their location.
- Statutory installment plan: If you can't repay by the due date, you have the right to request an installment plan at no additional cost. The lender is required to provide it. The first payment can't be due earlier than seven days after the plan is signed. If you're already on an installment plan, you cannot take out a new payday loan until it's completed.
- 8-loan annual limit: You cannot take more than 8 payday loans in any 12-month period. The lender is required to check a statewide database before issuing a loan. If a lender doesn't ask about your loan history or skips the database check, that's a violation.
- No criminal action for default: Lenders cannot pursue criminal charges against you for failing to repay a payday loan. If any lender or collector threatens arrest, report it to DFI immediately.
Walk away if
- An upfront fee is required before you receive any money.
- The lender won't provide a written agreement showing the fee in dollars, the APR, and the repayment date.
- You're pressured to sign immediately or told you can't take the agreement home to review.
- The lender can't be found in NMLS Consumer Access or confirmed by DFI.
- The lender doesn't ask about your income - Washington caps loans at 30% of gross monthly income.
- The lender suggests taking a new loan to pay off your existing one - this is prohibited from the same lender or affiliate.
- The lender's fee chart isn't posted at the location - licensed lenders are required to display it.
If payments look tight, review red flags on scams and safety.
Payday Loan Questions in Washington
How does Washington's 8-loan annual limit work?
You can take out a maximum of 8 payday loans in any rolling 12-month period. The lender counts back 12 months from the date you request a new loan. Rescinded loans (loans you cancel within the one-day window) do not count toward this limit. If you've reached 8 loans, you'll need to wait until one of the older loans falls outside the 12-month window before you can borrow again.
What is the statutory installment plan?
If you can't repay your payday loan by the due date, you can ask the lender for an installment plan. Under RCW 31.45.084, the lender is required to provide it at no additional fee or interest. The first payment can't be due earlier than seven days after you sign the plan. While you're on an installment plan, you cannot take out another payday loan. This is one of Washington's strongest borrower protections - use it before you default.
Why does my income affect how much I can borrow?
Washington caps payday loans at the lesser of the state's dollar maximum or 30% of your gross monthly income. This is an income-based affordability gate - it's designed to prevent you from borrowing more than you can realistically repay from a single paycheck. The lender should verify your income before making the loan. If they skip this step, they may be violating state law.
Can I cancel a payday loan after I sign?
Yes. Washington gives you until the end of the next business day to rescind the loan. If you change your mind, return the full loan amount within that window. No transaction fee is charged, and the rescinded loan doesn't count toward your 8-loan annual limit.
What happens if an online lender isn't licensed in Washington?
Any lender making payday loans to Washington residents - whether online, by phone, or in person - is required to hold a Washington Check Casher license with a Small Loan Endorsement. A loan from an unlicensed lender is uncollectable and unenforceable under Washington law. The lender cannot pursue legal action in Washington to collect the debt. If you're contacted by an unlicensed online lender, report them to DFI.
What happens if I can't repay?
Contact your lender immediately and request the statutory installment plan - the lender is required to provide it at no extra cost. If you default without requesting the plan, the lender may send the debt to collections or take civil legal action - but criminal prosecution is not permitted. See what to do if you can't repay. If monthly payments make more sense for your budget, consider an installment loan instead.
How do I verify a lender is licensed?
Use NMLS Consumer Access and search by the company's NMLS number or legal name. Confirm Washington is listed with a Check Casher license that includes a Small Loan Endorsement. You can also call DFI at 1-877-RING-DFI (746-4334) or (360) 902-8700.
Where do I file a complaint?
Visit the DFI complaint page or call 1-877-RING-DFI (746-4334). DFI examines licensed payday lenders every 6–24 months. If a lender is harassing or intimidating you during collection, include that in your complaint. You can also file with the CFPB.
Official Sources and Update Notes
This page provides general information, not legal advice. Rules can change; confirm current requirements with the Washington regulator before acting.
Washington regulator: Department of Financial Institutions (DFI)
Payday loan consumer guide: DFI - Consumers Guide to Payday Loans
Check cashers / payday lenders: DFI - Check Cashers and Sellers
License verification: NMLS Consumer Access
Consumer hotline: 1-877-RING-DFI (746-4334) · (360) 902-8700
File a complaint: DFI - File a Complaint or CFPB
Check Cashers and Sellers Act: RCW 31.45
DFI FAQs for lenders: DFI - Check Cashers FAQs
For installment loan options, see Washington installment loans. For statewide rules and context, go back to the Washington lending guide or browse all states in the state directory.