Payday and Money Tree Loans in Yakima, Washington: A Comprehensive Guide for Residents

Payday loans are often marketed to Yakima residents as quick and convenient solutions for short-term financial needs. For this reason, they have also become a staple for many people who are currently facing urgent financial pressure.

In Washington state, these loans are subject to strict regulations that are aimed at protecting consumers like yourself from predatory lending practices. Dive into the intricacies of payday and Money Tree loans with us as our experienced and knowledgeable Yakima bankruptcy attorneys explain the relevant statutes, specific laws, and everything you need to know as a consumer residing in Yakima County.

Payday loans are smaller, higher-interest, and shorter-term loans designed to cover those immediate emergency expenses you may be facing in Yakima. Typically, these loans are due on your next payday, and lenders often require a post-dated check or access to your bank account as collateral for this kind of loan.

The process is relatively easy. You simply apply for a loan online or in person, provide proof of income, identification, and banking information, and then receive a loan amount. In Washington state, these loans are often capped at around $700 and are usually due within two weeks or by your next payday.

Washington state enforces some of the nation’s strictest payday loan regulations. The laws in this state focus more on consumer protection while trying to find a balance between that and access to credit for those in need.

RCW 31.45: Check Cashers and Sellers Act

This statute, which governs all payday lending activities in the state, sets limits on loan amounts and repayment terms. It also requires that lenders be licensed by the Washington State Department of Financial Institutions (DFI).

RCW 31.04: Consumer Loan Act

This act imposes transparency requirements on the lenders and prohibits deceptive advertising and lending practices.

RCW 19.52: Usury Law

This regulates the interest rates placed on the loans to help prevent excessive charges for the consumer.

Again, the maximum loan amount is typically $700 or 30% of your gross monthly income, whichever is less. Repayment terms can vary depending on the lender but are usually between 7 and 45 days.

Finance charges for these loans are capped at around $15 per $100 you borrow for a loan up to $500. For any loans over that amount, there is an additional $10 fee that is allowed for every $100 you borrow.

Washington state also mandates that there is a cooling-off period of one day after you have taken out eight loans in a year. As a borrower, you are limited to no more than eight payday loans in 12 months.

If you can’t pay your loan on time, you can request an installment plan at no additional cost. This plan must be offered after the fourth consecutive loan, should allow repayment over 90 days, and should be clearly outlined in your loan agreement.

Washington lenders cannot roll over your payday loans, where you extend the repayment period by paying additional fees.

MoneyTree is a prominent payday lender in Washington. They operate in multiple locations across the state, including Yakima, and provide payday loans, installment loans, and check cashing services capped at $700. They also offer extended payment plans as required by state law. The application process is quick and streamlined, and decisions can usually be made in just minutes.

MoneyTree adheres to state laws, including those outlined in RCW 31.45. This helps ensure transparency and compliance with Washington’s payday lending regulations.

Still have questions? Here are the answers to some of the more commonly asked questions about payday loans in Washington state.

Yes. Some alternatives include taking out personal loans from credit unions, borrowing from friends and family, and seeking assistance from local financial aid programs.

No. Washington state prohibits you from taking out multiple payday loans at the same time from different lenders.

Bankruptcy can provide you some relief if you find yourself struggling with payday loan debt. Filing under Chapter 7 can discharge payday loan obligations, while Chapter 13 lets you include them in a structured repayment plan. Consult with a Yakima bankruptcy attorney if you need help understanding your options.

Yes, you can dispute charges you feel are unfair. To do this, file a complaint with the Washington State Department of Financial Institutions or seek legal assistance. You also want to take the time to carefully review your loan agreement and document all communication you have with your lender.

If you feel you were misled, consult with your Yakima attorney or contact the Washington Attorney General’s Office to file a complaint. Predatory lending practices are prohibited under RCW 31.45.

To avoid falling into a cycle of debt, make sure to carefully read your loan agreement and be aware of the interest rates, fees, and repayment terms. Only borrow what you need, or you can increase your risk of defaulting on the loan. It also doesn’t hurt to explore alternatives, as we mentioned above. Additionally, create a budget to help manage your finances and reduce your reliance on these high-interest loans.

Money Tree loans must comply with the same state payday lending laws other providers must follow. This includes caps on fees, limits on loan amounts, and rollover restrictions.

Generally, Money Tree and other payday lenders require that you have a checking account to use for deposits. This means prepaid debit cards may not be eligible for the direct deposit of your loan funds.

Federal law caps payday loan APRs at 36% for active-duty military members and their families under the Military Lending Act (MLA). Money Tree and other lenders are required to comply with these protections.

Yakima has a very diverse economy and a big agricultural base. Despite these economic strengths, many residents still find themselves turning to payday loans during an emergency. While payday lenders like MoneyTree operate to meet this demand, they can create cycles of debt for you with high interest rates becoming a huge issue.

Since payday loans carry high interest rates and aggressive collection tactics are often used, you can see why they can be a big reason contributing to financial distress for many Yakima residents. Bankruptcy attorneys in Washington offer valuable services if you find yourself struggling with payday loan debt.

• Protection From Your Creditors: When you file for bankruptcy, it will immediately stop all collection efforts against you, including lawsuits and wage garnishments. This happens under the automatic stay provision in the US Bankruptcy Code.
• Debt Discharge Under Chapter 7: You can be relieved of your obligation to repay if you choose to file for Chapter 7 bankruptcy, which completely discharges the debt.
• Structured Repayment Plan Under Chapter 13: Your Yakima attorney can help you include your payday loans in a court-approved repayment plan.
• Negotiations With Lenders: Your attorney can also negotiate with your lenders directly to settle debts for less than the amount you owe or establish more manageable repayment terms.
• Counseling: They can also counsel and advise you on how to rebuild your credit and avoid predatory loans in the future.

As you can see, while payday loans can provide you with short-term relief for a financial emergency, they often come with huge risks. In Washington state, regulations are in place to protect you from predatory practices and ensure you have fair access to the credit you need.

Understand these laws and explore alternatives to break the cycle of debt you might find yourself in.