SEATTLE - Washington's new state laws to curb payday loan abuse are equally tough on both short-term borrowers and their high-interest lenders. Starting January 1, no one can take out a payday loan that totals more than $700 - or one-third of their gross monthly income - and lenders can check the borrower's loan history on a statewide database. The maximum number of payday loans that legally can be issued per person in a 12-month period is eight.

Deb Bortner is director of consumer services for the Washington State Department of Financial Institutions (DFI), the agency that licenses payday lenders. She says the goal is to keep people from getting stuck in an expensive cycle of debt.

"What we've seen is there are people - a very small number of people - who actually take out one a week. The law says you're not supposed to be able to take out one loan to pay off the last loan."

Other states have passed caps on payday loan interest rates, but Bortner says Washington lawmakers took a different approach, limiting the amounts people can borrow and making lenders work with those who cannot keep up with payments.

"When people do get in trouble and they can't pay back a loan, they can tell their lender, on or before it's due, 'I can't pay it back on time.' Then they're eligible to get a free installment plan."

She says the installment plan gives the borrower 90 days to pay back a loan of $400 or less and 180 days for larger amounts. The new law also sets out specific rules for when and how often a lender can contact a borrower who is behind on payments.

According to Bortner, payday lenders do not like the new law because they make more money by rolling over one loan into another. However, with more than $1 billion in short-term loans made per year across the state, she says lawmakers decided both lenders and borrowers needed some limits.

The DFI web site contains an explanation of the new laws and offers the ability to verify whether a lender is licensed, at www.dfi.wa.gov.



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Due dates for student loan repayment remain uncertain for many Indiana students amid changes at the federal level. For those who were not granted loan forgiveness during the Biden administration, the possibility of pre-graduation loan repayment could be a financial torpedo.

Research site Education-data.org reports the average Indiana student loan balance is $33,000 as of June 2025 - lower than the national average - with slightly less than $31 billion owed statewide.

Nonprofit InvestEd works with students on the best approach to repayment. Its Chief Marketing Officer Bill Wozniak advises that early preparation is key.

"Plan as if it starts tomorrow. Plan as if it starts next month. Just be ready in case that happens," he said. "We've really been cautioning about planning ahead, if and when that day was going to come, and hopefully that advice was heeded, and maybe those funds weren't spent elsewhere."

Students often mistakenly pay double-digit interest rates, Wozniak said, which is why it's important to determine if loans are federal or private and to select the repayment plan that's the best fit. Every year, federal student loan rates change based on a formula set by Congress. Interest rates for loans between July 1, 2025, and June 30, 2026, range from 6.3% to 8.9%.

Education-data.org reports a total of nearly 906,000 student borrowers live in Indiana.

Wozniak admitted that setting aside money for savings is a challenge while in college, with housing, vehicles, credit cards and countless other living expenses to consider.

"Keep checking your email, keep up to date on the latest information," he said. "Make sure you read the things from your servicer, something that maybe you were supposed to start paying on, 2023, 2024, 2025. It might all of a sudden become a thing that you have to make a payment on."

President Donald Trump's tax and spending law contains new restrictions on the amount students can borrow and how they can repay. It also removes income-contingent repayment plans for student loans paid out after July 1, 2026.


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Americans have approximately 631 million credit card accounts, with nearly four cards per person.

The accounts can be a payday for con artists who prey on victims using a new scheme called the card decline scam. It involves flashing a "transaction decline" message during an online purchase. The buyer repeatedly enters the same or different credit card numbers under the belief the card or website is malfunctioning. The scammer collects a user's payment information each time they enter a card number.

Jennifer Adamany, communications director for the Better Business Bureau Serving Central Indiana, said the damage does not stop there.

"Later on, they will find out from their bank or their credit card company that the card was never declined but in fact, multiple charges have gone through," Adamany explained. "In some cases, these people's personal or financial information is being stolen, leading to identity theft."

The Indiana Economic Digest reports in 2023, Hoosiers lost almost $93 million to impostor fraud, 17% of which was due to identity theft. The Federal Trade Commission identified credit card fraud as the most reported type of identity theft nationally in 2024, with almost 450,000 cases submitted.

Most banks and financial institutions issue monthly transaction statements, meaning weeks can pass before the consumer realizes their identity has been stolen.

Adamany pointed out there are ways to shop safely online. The key is to take your time and take more than a quick glance before pulling out your credit card. Instead, verify the website and double-check the URL. Another tipoff, she explained, is a misspelling in the domain address.

"Sometimes it's a simple two-letter switch that to your eyes seems correct, but that slight little switch makes all the difference to direct you to a fraudulent website as opposed to the legitimate website," Adamany added.

It is important to look for the letter "s" in the address bar when you see the letters "http," which can add some security to the website, Adamany noted. Avoid clicking suspicious links and do not click on links in unsolicited emails, text messages or social media ads. She emphasized the tempting discounted items or limited-time offers can be tactics con artists use to rush shoppers into making an unsafe, impulse purchase.


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While a new ruling by a federal judge allows medical debt to remain on Americans' credit reports, Washington residents will be protected from the practice, under a new law.

Medical debt impacts nearly one third of Washingtonians, while six in 10 residents said they would not be able to pay an unexpected $500 medical bill.

Sen. Marcus Riccelli, D-Spokane, sponsored the bill, which he said could improve someone's credit score by an average of 20 points.

"I think there's just this general understanding that if you wake up and you have a bad day, you end up in the emergency room, that shouldn't impact whether or not you can get a job or get housing," Riccelli explained.

Some lawmakers pushed back against the bill, saying it will give an unclear picture of someone's financial status. The Washington Hospital Association supported the bill, which has been signed into law and will take effect July 27.

The law also bans unauthorized fees, threats of illegal actions and excessive contact by debt collectors. Riccelli argued it is a bipartisan issue, citing research showing the vast majority of Americans want their elected officials to reduce health care costs.

"It's really unfortunate that things seem to be moving in the opposite direction at the national level," Riccelli pointed out. "But in Washington, I'm looking to do what other states have done around cutting costs, providing protections for consumers and providing more transparency in pricing."

Emily Brice, co-executive director of Northwest Health Law Advocates, a nonprofit working to improve access to affordable health care in Washington, said recent moves by Congress will lead to more residents being saddled with medical debt, and the state needs to take more action.

"We are going to need innovative and creative policy solutions and, frankly, state leadership to prevent our health care safety net from being shredded," Brice urged.


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