Payday Loan Laws

DC District of Columbia Payday Loan Laws & Legislation

District of Columbia Payday loan laws. District of Columbia Payday loan legislation. 10% of the face amount of the payday loan plus a scale of fees based upon the face amount of the check.

In May 2008, the Washington D.C. City Council passed a bill which put a 24% interest rate cap on small consumer loans. By the end of the year 21 payday loan stores had ceased to exist.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to

D.C State Information

Legal Status: Prohibited

Amended D.C. Code Ann. § 28-3301(a)

Small Loan Rate Cap
24% per year

Where to Complain, Get Information:
Regulator: D. C. Department of Insurance, Securities and Banking
Address: 810 First Street, NE Suite 701 Washington DC 20002
Phone: (202) 727-8000
Fax: 202-535-1194
Regulatory Contact:
Regulator’s Website
Online Resources:


Washington DC Payday Advance Stores Form Trade Association; Calls on DC City Council to Implement Industry Wide Reforms

Forty plus payday advance stores in the District form the District of Columbia Financial Services Association (DCFSA). DCFSA will focus on working with the Washington, DC City Council to enact into law several key reforms to better protect payday advance customers and preserve a popular, well-regulated short-term credit option. These reforms include requiring all lenders to:

-- Make sure consumers understand the cost of the product by fully disclosing all fees in simple and easy to understand language
-- Help customers avoid getting into a "cycle of debt" by allowing only one rollover and offering and extended payment plan, at no cost, to any customer who cannot pay back the loan when due
-- Verify that customers have the ability to repay, before approving the loan
-- Support tougher penalties for any lender not following the law
-- Fund financial literacy programs in the District

"DCFSA encourages the DC City Council to enact these no-nonsense reforms into law," said Sonny Eyabi, President, DCFSA. "Our members will be required to institute these reforms to better protect our customers. We hope the City Council will follow our lead, and take the necessary steps to protect DC residents without taking away a valuable tool that helps Washingtonians make ends meet between paychecks."

Payday loans are short-term, small loans used by customers who want to avoid bounced-check fees, late credit card payments or utility shut-off charges. The maximum fee for a payday loan in DC is $16.11 per $100 borrowed.

"Payday advance stores in DC care about their customers. Our customers are our friends, our neighbors, the police officers who protect us, the teachers who educate our children and the healthcare workers who mend us. We sincerely hope the City Council will enact common sense reforms to protect these consumers and not pass any proposal which would essentially ban payday advance in the District," concluded Eyabi.

For more information, please visit The site includes a full list of DCFSA's Best Practices and a video of DC customers explaining why they have used the payday advance service.

About the DC Financial Services Association
The DC Financial Services Association is dedicated solely to promoting responsible regulation of the payday advance industry and consumer protections through DCFSA's Best Practices. As such, we are committed to working with policymakers, consumer advocates and DCFSA member companies to ensure that the payday advance is a safe and viable credit option for consumers. Go to for additional information. District of Columbia Financial Services Association
CONTACT: Steven Schlein or Lyndsey Medsker, +1-202-296-0263, for District of Columbia Financial Services Association
Web site: