Washington Payday Loan Laws

Licenses lenders may loan up to $700 at one time, In general the usury rate in Washington is 12% per year or 4% above the treasury bill rate. However Washington state-chartered Credit Unions may offer loans to their members at 15%. Washington requires payday lenders to be licensed and has special rules for military borrowers: Payday lenders are prohibited from:

• Garnishing a military borrower’s wages s;
• Contacting the borrower’s chain of command in an effort to collect on a delinquent loan; and
• Make a loan to a person that the licensee knows is a military borrower from a location that a military base commander has notified the licensee in writing is designated off-limits to military personnel
• May not collect against a military borrower who has been deployed to a combat or combat support post for the duration of the posting
• Must honor the terms of any repayment agreement negotiated between the borrower and lender, or through military counselors or third party credit counselor on behalf of the military borrower

A "military borrower" includes any active duty member of the armed forces of the United States, any member of the National Guard or the reserves of the armed forces of the United States who has been called to active duty S.B. 5415. The effective APR for a 14-day $100 loan is 390%.