$174 Million In Fees Collected by Washington Payday Loan Companies
The number of payday lending locations in Washington state increased by 90% since 2000. The average payday loan amount in 2005 was $385.00 and the average payday loan fee was $48 in Washington. Over 80% of payday loan customers take out more than one payday loan per year.
Payday loan companies in Washington typically charge 300-400% annual interest rates! Consumers recently emerging from bankruptcy or considering bankruptcy as a solution can find better financing options from credit unions or even a cash advance from a credit card companies.
Payday lending practices hurt more than help a consumer's financial situation since the borrower has to spend so much money on the ridiculously high fees. Washington state legislators are currently working on bills to cap payday lender fees at 36% and protect borrowers from the expensive, endless cycle payday loan companies promote.