Payday loans in Washington DC
The District of Columbia does not allow payday loans: its Payday Loan Consumer Protection Amendment Act of 2007 removed payday lending from the Check Cashers Act, and each consumer loan is capped at 24% interest a year.
- Payday lending
- Banned
- Max cost
- 24% APR
- Top amount
- None allowed
Are payday loans legal in Washington DC?
No. The Payday Loan Consumer Protection Amendment Act of 2007 ended legal payday lending in Washington DC. The District of Columbia Interest and Usury law covers written loans and holds interest to 24 percent a year, while a verbal loan may carry no more than six percent. A company that charges more than six percent needs a money lender license. Licensed check cashers may not advance cash on a post-dated check either.
Lenders advertising to District residents by mail, phone, or internet must follow this 24 percent cap. Lenders agreeing to a higher rate lose all rights to collect any interest. You may sue to recover unlawful interest within one year of your payment date. Any money lender, in person or online, can also be reported to the District of Columbia Department of Insurance, Securities and Banking.
- Written loans in the District face a 24% yearly cap and verbal ones a 6% cap, while usurious lenders forfeit all interest.
- The usual storefront payday model ends because licensed check cashers cannot cash or advance money on post-dated checks.
- The 2007 Payday Loan Consumer Protection Amendment Act stopped payday lending under the Check Cashers Act starting January 9, 2008.
- Elevate, an online lender, settled with the Attorney General in 2022 over its Rise and Elastic loans, priced at 99-251% APR, and paid at least $3.3 million back to borrowers.
- SoLo Funds settled in 2023 over tip-based loans that ran above 500% APR, an agreement the AG described as precedent-setting.
Washington DC payday loan laws
- Law in force
- District of Columbia Interest and Usury law (Loan Shark Act) and Payday Loan Consumer Protection Amendment Act of 2007
- Cited as
- Sections 26-319(b), 26-901, 28-3301 and 28-3303 of the D.C. Code
- Fees under the law
- in a written agreement to pay money later, the parties may agree on interest up to 24% a year
- Installment lending limits
- Charging over 6% a year requires a DISB money lender licence (D.C. Code 26-901), and D.C. Code 28-3301(a) caps every loan at 24% a year
Also checked against disb.dc.gov. Full statute text.
Online lenders that list Washington DC
Four companies we track say they lend in Washington DC: 3 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Washington DC
The 24% cap reaches any lender that solicits DC residents online or by other electronic means, and DC's Attorney General led a 15-state brief saying a lender that claims tribal immunity must prove it is a real arm of the tribe.
On the immunity claim tribal lenders make, see are tribal loans legal.
Three tribal lenders we track list Washington DC as a state they lend in. One of the three publishes an APR: 325% to 725%. That lender posts a top APR above Washington DC's 24% APR cap.
| Lender | Posted APR |
|---|---|
 BrightLending | 325% to 725% |
 MaxLend | Not published |
| American Web Loan | Not published |
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Lender cases and orders in Washington DC
- 2024 · District of Columbia Attorney GeneralEarnIn: A DC OAG lawsuit against EarnIn says the Cash Out advances it offers are unlicensed loans, with fees that are not clearly disclosed and rates averaging above 300%. Source
- 2022 · District of Columbia Attorney GeneralRise Credit: DC sued Elevate because RISE and Elastic loans were priced above DC's 24% cap; the settlement paid at least $3.3 million in refunds and $450,000 to the District of Columbia. Source
- 2021 · District of Columbia Attorney GeneralOppLoans: The DC AG took OppFi to court for loans near 160% APR over DC's 24% limit; the deal brought $1.5 million in refunds, $640,000+ waived, and $250,000. Source
Washington DC and the states around it
Washington DC loans with no credit check
Installment loan rates: Charging over 6% a year requires a DISB money lender licence (D.C. Code 26-901), and D.C. Code 28-3301(a) caps every loan at 24% a year.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Washington DC
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the DC Department of Insurance, Securities and Banking (DISB).
- Had trouble with a lender? Report the lender.
Sources for Washington DC
- Written loan contracts cannot carry interest above 24% per year.; DC residents are protected by the usury chapter when the creditor they deal with advertised in the District of Columbia, online ads included.; Contracting for a usurious rate costs the creditor all of the interest.code.dccouncil.gov
- Cashing or advancing money on a post-dated check is prohibited for licensed check cashers.code.dccouncil.gov
- DISB instructed payday lenders using the Check Cashers Act to halt the activity starting January 9, 2008.; On October 3, 2007, the 2007 Payday Loan Consumer Protection Amendment Act was signed.; A 24% cap holds for any payday lender, who would also need a money lender's licence.disb.dc.gov
- A money lender licence is needed for lenders charging more than 6% a year, and no lender may go over 24%.; Applicants for a money lender licence must apply through NMLS.disb.dc.gov
- DISB accepts complaints regarding money lenders both online and in person.disb.dc.gov
- Elevate agreed in February 2022 to pay at least $3.3 million in refunds to over 2,500 DC consumers.; Elevate's APRs of 99-251% were far beyond the 24% DC allows.; The OAG says DC law limits lender rates to 6 or 24 percent based on the contract type.oag.dc.gov
- In May 2023 the OAG reached a settlement with SoLo Funds over tip-based loans whose APRs passed 500%.; The OAG called the SoLo agreement, dated May 10, 2023, precedent-setting.oag.dc.gov
- In December 2018 the DC AG headed 15 states in contending that a lender claiming tribal immunity must show it is an arm of the tribe.oag.dc.gov