District of Columbia Payday Loan Law and Legislation

District of Columbia Payday Loan Regulations
Legal Status
Prohibited
Interest Rate (APR)
24% small loan cap

Payday lending is prohibited in Washington, DC.

District of Columbia Legislature put a stop to payday lending practices in the state first in 1998 when it banned check cashers from issuing post-dated checks and next in 2007 when it eventually put a 24% APR cap on small loans. Currently, there are no payday lenders in the state.

Washington, DC Payday Lending Statutes

Washington, DC has two laws that restrict payday lending: amended D.C. Code Ann.28-3301(a):

“(a) Except as otherwise provided in this section, section 28-3308, and chapter 36 of this subtitle, the parties to an instrument in writing for the payment of money at a future time may contract therein for the payment of interest on the principal amount thereof at a rate not exceeding 24% per annum.”

 and 26-319:

“(b) No licensee shall at any time cash or advance any monies on a post dated check.”

Rates, fees and other charges in Washington, DC

There is a small loan cap of 24% APR. (D.C. Code Ann.28-3301(a))

Consumer Information

More information about small loan laws and regulations in Washington, DC can be found on the official website of the D. C. Department of Insurance, Securities and Banking.

The History of Payday Loans in Washington, DC

  • 1998 – The Check Cashing Act stopped the practice of issuing post-dated checks in D.C. However, people went on borrowing in the same manner from check cashers. Rates were sky-high, debts grew.
  • 2007 – Washington, DC banned payday loans in the state. As a matter of fact, the Consumer Protection Amendment Act of 2007 was enacted. It capped small cash loans at 24% APR and removed everything related to payday loans from the Check Cashing Act of 1998.
  • Present days – Payday loans are currently illegal in DC.

(As of May 2019)

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