Skip to content
Oakclause

Usury Laws in Washington

Washington caps interest at 12% a year (or 4 points over the 26-week Treasury bill rate if higher), applies 12% when no rate is agreed in writing, and makes extortionate lending a class B felony.

Last checked . General information, not legal advice.

Washington at a glance

Maximum agreed rate
12% (or T-bill rate plus 4 points, if higher)
Legal rate (no rate agreed)
12%
Prejudgment interest on medical debt is capped at 9%.
Criminal usury
Extortionate extension of credit: class B felony
A rate over 45% is one of the factors that together are prima facie evidence of an extortionate loan.

Sources

Last checked

The rules in Washington

What is the maximum interest rate on a private loan in Washington?

Maximum agreed rate in Washington: 12% (or T-bill rate plus 4 points, if higher).

What interest rate applies in Washington when no rate was agreed?

Legal rate (no rate agreed) in Washington: 12%. Prejudgment interest on medical debt is capped at 9%.

When is charging high interest a crime in Washington?

Criminal usury in Washington: Extortionate extension of credit: class B felony. A rate over 45% is one of the factors that together are prima facie evidence of an extortionate loan.

Where do the Washington usury laws come from?

The rules above come from RCW 19.52.010, RCW 19.52.020, RCW 9A.82.010, RCW 9A.82.020 and RCW 9A.82.045. Each source is linked on this page. We last checked them in October 2026.

Good to know

Collecting a debt made at twice the permitted usury rate or more in the lending business is a criminal profiteering offense under RCW 9A.82.

What this means in practice

Put the interest rate in writing. Many usury statutes set one limit for written agreements and a different, often lower, rate when nothing was agreed in writing. A signed promissory note or loan agreement that states the rate, the payment schedule and what happens on late payment avoids most disputes.

Count every charge, not only the stated rate. Courts may treat fees, points, required extras or a discount taken from the amount lent as interest when deciding whether a loan is usurious. A loan with a modest rate and large fees can still cross the limit.

Check who the lender is and what the loan is for. Usury limits often do not apply, or apply differently, to banks, licensed consumer lenders, credit card issuers, larger loans and loans to businesses or corporations. A rule written for loans between individuals may not cover your situation, so read the statute and its exceptions.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.