Payday Loan Laws in Washington
Payday loans are ideal for those unexpected situations that require fast cash without
the hassle or wait of traditional loans. The payday loan laws in Washington
state, however, are some of the most straightforward laws concerning these short-term
loans of any state in the US. This means that there are no hidden fees or unexpected
charges that can turn a small loan into a difficult financial situation, and Washington
residents have the added benefit of the right to change their mind within one day
after the loan was obtained.
It is important to note that payday loans are not available in every state and laws
and regulations vary by state. Information for
Massachusetts Payday Loans is provided for your convenience.
Payday loans have become extremely popular because they are available to virtually
anyone with active employment, including those with bad or no credit. The Department
of Financial Institutions regulates payday lenders, and not only grants borrowers
to right to know all of the costs associated with the loans upfront, but also protects
them from the threat of criminal prosecution should the loan become past due. Both
local and Internet payday lenders are required to licensed with the DFI, which makes
payday loans in this state safe, as well as convenient.
Payday loan laws in Washington limit the amount that can be borrowed to a
maximum of either $700 or 30% of the employment income before taxes. While loans
may not extend beyond 45 days, Washington does allow installment plans to be arranged
should the borrower be unable to pay the balance by the established due date. The
laws also limit the number of loans that can be taken in a 12-month period to 8,
although any loan currently being repaid through an installment plan will make the
borrower ineligible to obtain additional loans while the installment plan is active.
The fees of payday loans in Washington are the aspect that makes them particularly
beneficial to borrowers in this state, as the schedule of fees schedule is one of
the most straightforward of any state in the US. Fees are set at 15% of the loan
balance for the first $500, with 10% of amount over $500 added to the total. The
benefit of this easy-to-understand pay structure is that it makes it possible to
determine the exact amount of repayment before a loan is obtained.
Washington state also has a unique perk that is not common in most states that offer
payday loans, and that is the ability to change your mind within a 24-hour period.
This means that borrowers are allowed to repay their loan the very next day and
avoid the paying of any fees whatsoever. This 24-hour grace period makes payday
loans ideal for sudden expenses, as well as spur-of-the-moment purchases.
Payday loans are the fastest and easiest way to get money for the unexpected expenses
that cannot wait until the next paycheck, and in Washington state, the laws regarding
these loans are particularly favorable to the borrower. A set fee schedule eliminates
the risk of hidden charges, while the ability to establish an installment plan eliminates
the pressure of repayment should the borrower be unable to pay the balance on the
scheduled due date. The right to change your mind within a 24-hour period may be
the best perk of Washington payday loans, repayment the very next day completely
eliminates the additional fees. Lenders are also required to be registered with
the Department of Financial Institutions to offer payday loans in this state, and
borrowers may file complaints with the DFI should a dispute arise.
Take a look at the benefits of applying for Online Payday Loans
if available in your state.
Rudi is a credit analyst who writes articles about credit scores, building credit, and consolidating debt. His know-how on poor credit and credit unions make his input invaluable to our company. There is no credit score out there that Rudi can’t help with.