A traditional title loan is not permitted as a Washington small loan because the lender may not take a vehicle title or other property as collateral. Washington small loans are limited to the lower of $700 or 30% of a borrower’s gross monthly income, may run no longer than 45 days, and have statutory aggregate fee limits.
Last reviewed: August 12, 2026. This page provides general consumer information, not legal advice.
Is a title loan legal in Washington?
Washington’s Small Loan Act does not allow a lender to use a car title as security for a small loan. RCW 31.45.073(6) allows a small-loan licensee to advance money on a postdated check, but expressly says the licensee may not accept any other property, title to property, or evidence of property ownership as collateral. That makes the conventional title-loan model unavailable through Washington’s small-loan structure.
Washington does regulate consumer lending through the Department of Financial Institutions (DFI). A different vehicle-secured consumer-credit product may be subject to another law and licensing framework, so ask DFI and a qualified attorney about the specific agreement before signing. A business marketing a Washington small loan should have the required small-loan endorsement for each location where it makes those loans.
Sources: RCW 31.45.073, Washington Small Loan Act, Washington DFI Consumer Services, and Washington DFI complaint information.
Washington title loan limits
| Rule | Washington limit or requirement |
|---|---|
| Maximum APR / interest rate | A conventional title loan is not allowed as a small loan. For a qualifying small loan, aggregate interest and fees may not exceed 15% of the first $500 of principal plus 10% of the portion above $500. RCW 31.45.073(5). |
| Maximum loan amount | The maximum small-loan principal is the lower of $700 or 30% of the borrower’s gross monthly income. RCW 31.45.073(2). |
| Minimum / maximum term | The due date must be on or after the next pay date, or the second pay date when the next pay date is within seven days. The original term may not exceed 45 days. RCW 31.45.073(2). |
| Rollovers or renewals | There is no title-loan rollover because a vehicle title cannot secure a Washington small loan. A small-loan term may be extended only by agreement of both parties and without an additional fee or interest. RCW 31.45.073(2). |
| Repossession notice period | Not applicable to a Washington small loan: a licensee may not accept a vehicle title or other property as collateral. RCW 31.45.073(6). |
| Right to cure / redeem | Not applicable to a title-backed small loan because Washington law does not permit that collateral. For a different consumer-credit agreement, read the contract and confirm applicable rights with DFI or a legal adviser. |
| Surplus return after sale | Not applicable to the prohibited title-collateral small-loan structure. A lender cannot take a vehicle title as collateral for a small loan under RCW 31.45.073(6). |
What you need to apply in Washington
Do not provide your car title for a Washington small loan. A legitimate small-loan provider needs a Washington small-loan endorsement, and the statute limits its security to one postdated check per loan. The lender may disburse the funds in cash, by check, or by electronic equivalent.
Before considering any consumer loan that involves your vehicle, obtain the proposed contract, a complete charge disclosure, the lender’s legal name and licence information, and written confirmation of what happens if payments are missed. The $700-or-30%-of-income rule is a small-loan rule, not a promise that another vehicle-financing arrangement is lawful or appropriate.
How repossession works in Washington
Repossession is not a remedy under a Washington small loan secured by a title, because the law prohibits that security in the first place. RCW 31.45.073(6) bars the licensee from taking a car title, other property, or evidence of ownership as collateral. A small-loan lender therefore should not be holding your title as the basis for taking your car.
If a company calling itself a Washington small-loan lender asks for your title or threatens vehicle seizure, preserve the advertisements, agreement, payment history, and messages. Contact the Washington Department of Financial Institutions to verify the business and use its consumer-complaint process for suspected lending misconduct. Separate secured-credit arrangements can involve different rules; obtain individual legal advice before surrendering a vehicle.
Licensed alternatives in Washington
Washington residents facing a short-term expense have options that do not require handing over a vehicle title. The following resources are administered by public agencies or regulated institutions.
- Utility and heating support: the Washington Department of Commerce’s Low Income Home Energy Assistance Program helps eligible households with energy bills through local providers.
- Food and cash assistance: the Washington Department of Social and Health Services explains Basic Food and other Economic Services Administration programs.
- Community referrals: Washington 211 connects residents with local housing, food, health, utility, and crisis resources.
- Credit-union small loans: eligible federal credit unions may offer Payday Alternative Loans; review the NCUA PALs II rule and ask a local credit union whether you qualify.
- Lender concern: submit a concern through the Washington DFI complaint process after gathering the lender name, contract, and supporting records.
Cities we serve in Washington
Washington location pages remain subject to the execution plan’s lender-relationship and content-quality review. This statewide page does not link to city pages until those pages are confirmed as surviving, accurate destinations. It is the current reference point for Washington small-loan restrictions and consumer resources.
Frequently asked questions
Are car title loans legal in Washington?
Not as Washington small loans. RCW 31.45.073 says a small-loan licensee may not accept a title to property, other property, or evidence of ownership as collateral. Because a vehicle title is the security central to a conventional title loan, that model is not permitted through the Small Loan Act.
How much can I borrow with a Washington small loan?
The maximum principal for a Washington small loan is the lower of $700 or 30% of your gross monthly income. The rule applies across the outstanding balances of small loans from all licensees to one borrower, not merely to a single loan contract.
How long can a Washington small loan last?
The original term cannot exceed 45 days, including weekends and holidays. Its due date must be on or after the next pay date, or on or after the second pay date if your next pay date falls within seven days after the loan is made.
Can a Washington lender charge interest on a small loan?
Yes, within an aggregate interest-and-fee limit: no more than 15% of the first $500 of principal and 10% of the portion above $500. Those limits concern small loans and do not turn a vehicle-title arrangement into a permitted small loan.
Can a Washington small-loan lender repossess my car?
A small-loan lender cannot use your car title as collateral, so vehicle repossession is not part of that legal structure. If a lender has requested your title or threatened to take the car, retain your documents and contact Washington DFI to verify the lender and report concerns.
