Payday loans are legal in Washington. To issue these short-term loans, cash advance businesses are required to be licensed in the state and to have a small loan endorsement to their payday loan license. The license must be displayed in plain view and list a schedule of fees. Washington law prohibits a cash advance company from holding a check or checks that exceed $700 including permissible fees from any one customer at a given time. Payday loan providers have a private right of action against defaulting borrowers; however, they cannot bring criminal proceedings for collection purposes.
A borrower can request up to $700 in cash advance loans.
The loan term is 31-45 days.
Payday loan stores are not permitted to offer consumers an extension or rollover.
A check cash advance creditor is allowed to charge customers a fee or interest rate that is not greater than 15% of the initial $500 of the principal. For amounts ranging from $501 to $700, the lender may charge 10% of the loan amount. The finance charge for a two-week loan in the amount of $100 loan is $15. A borrower may charge a one-time $25 NSF (non-sufficient funds) fee as well as collection costs.
The APR for a two-week loan in the amount of $100 is 390%.