Washington, DC Payday Loan Law and Legislation

District of Columbia Payday Loan Regulations
Legal Status
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):

Unless stated elsewhere in section 28-3308 of the code of the District of Columbia the associates of the written arrangement for future payment are permitted to contract for interest payments on the principal, so long as it does not exceed 24% yearly.
As clarified in 26-319 of the Code of the District of Columbia, no licensed lender may advance monies on, or cash 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.

Regulator: Complaints & Information

D.C. Department of Insurance, Securities and Banking

Address: 1050 First St NE #801, Washington, DC 20002
Phone: 202-727-8000
Url: https://disb.dc.gov/
File a Complaint: https://disb.dc.gov/service/file-complaint-or-report-fraud

Number of District of Columbia Consumers Complaints by Topics

According to CFPB Consumer Complaint Database

  • Charges from account ( 30 )
  • Not exiting debt ( 18 )
  • Fraud and threat ( 8 )
  • Not requested loan ( 4 )
  • Lender is not available ( 4 )
  • Credit rating ( 3 )
  • Loan not received ( 3 )
  • Loan to return ( 2 )

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.

[Updated As of February 2020]

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