New WA Payday Loan Limits Take Effect Jan. 1
She says the installment plan gives the borrower 90 days to pay back a loan of $400 or less and 180 days for larger amounts. The new law also sets out specific rules for when and how often a lender can contact a borrower who is behind on payments.
According to Bortner, payday lenders do not like the new law because they make more money by rolling over one loan into another. However, with more than $1 billion in short-term loans made per year across the state, she says lawmakers decided both lenders and borrowers needed some limits.
The DFI web site contains an explanation of the new laws and offers the ability to verify whether a lender is licensed, at www.dfi.wa.gov.