Payday loans in Washington: what the law allows

“State law sets limits on payday loans: Most you can borrow: $700 or 30% of your gross monthly income, whichever is less Longest loan term: 45 days Highest fee allowed: 15% on the first $500, and 10% on amounts above $500 Loan limit: no more than 8 payday loans in any 12-month period Lenders report every loan to a statewide database. This is how the limits are enforced. Lenders must tell you costs. Lenders must tell you the cost as an annual percentage rate (APR). For example, a 14-day, $500 loan with the maximum fee has an APR of 391%. Your rights You can change your mind. You have one day to cancel the loan. You have the right to a payment plan. If you cannot repay on time, you can ask for an installment plan with no extra fees. While you are on an installment plan, you cannot take a new payday loan. You must be told all costs before you borrow. A lender cannot give you a new payday loan to pay off an old one from the same lender or its affiliate.”