Arizona Payday Loan Laws and Regulations
Find out if short-term Payday Loans are legal in Arizona and what amounts, interest rates, and repayment terms are set by the state's Legislation.
Legal Payday Loans Online for Arizona residentsApply online
Arizona Payday Loans Rates and Terms
| Legal Status ▲ Legal Status The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates. | Available (with some restrictions) |
| Maximum APR ▲ Maximum APR The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan. | 36.00% |
Though you must have heard that traditional Payday Loans are restricted in Arizona, you may find other options to get instant cash advances permitted by Arizona laws. Study the state's rules and regulations concerning short-term payday loans in Arizona. Find available alternatives.
Table of Contents:
Are Payday Loans legal in Arizona?
Why are Payday Loans illegal in Arizona?
Arizona Payday Loans online laws
Does Arizona law allow Payday Loans for bad credit borrowers?
Arizona Payday Loans news - latest changes
Are Payday Loans legal in Arizona?
Short-term Online Payday Loans in Arizona are available but with certain restrictions imposed by Ariz. Rev. Stat. Ann. §§ 6-601 et seq.. The Payday Lending legislation covers all the parts of the process concerning:
- Payday Loan amounts
- Payday Loan repayment terms
- Payday Loan online direct lenders
- Payday Loan stores near you
- Payday Loan interest rates and other fees
- Payday Loan collecting practices
- Payday Loan default penalties
- The number of outstanding Payday Loans as well as a cooling-off period in-between etc.
The main Payday Loan eligibility criteria that the residents of Ariz. Rev. Stat. Ann. §§ 6-601 et seq. must meet are:
- Arizona resident
- over 18 years of age
- an active banking account
Ariz. Rev. Stat. Ann. §§ 6-601 et seq. caps all short-term loans under $3000 at 36% APR.
For other details and information on Payday Loans in Arizona contact Arizona Department of Financial Institutions, Financial Enterprises Division, 2910 N. 44th Street, Suite 310 Phoenix AZ 85018, (800) 544-0708.
Why are Payday Loans illegal in Arizona?
The Government considers Payday Loans too expensive and often associated with lenders' predatory practices. That's why in Arizona Payday Loans were legal only till 2010 when a 36% APR cap was set. It caused most lenders to stop issuing short-term small-dollar loans as it became not profitable. Still, there still exist some banks and online companies offering similar types of cash advances suitable to cover any unexpected emergencies.
Arizona Payday Loan laws
Arizona residents who would like to apply for a Payday Loan online as well as in-store must meet the following eligibility criteria:
- Arizona resident
- over 18 years of age
- an active banking account
Besides, it's necessary to keep in mind that even if you qualify for a loan it doesn't mean you get one. Don't forget about the restrictions on loans under $3000 in Arizona state.
However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for an online Payday Loan in Arizona.
If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in Arizona: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.
Arizona Payday Loans online laws
Cash advances (payday loans) from both storefront and online lenders are restricted by 36% APR usuary cap by Ariz. Rev. Stat. Ann. §§ 6-601 et seq.. It also concerns online lenders which must operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to Arizona Department of Financial Institutions, Financial Enterprises Division, 2910 N. 44th Street, Suite 310 Phoenix AZ 85018, (800) 544-0708 for law violations.
The law obligates Arizona Payday Loan lenders to provide you with a written disclosure of all the rates and fees in understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.
Does Arizona law allow Payday Loans for bad credit borrowers?
The average credit score in Arizona is 620, placing it in the fair range. But it doesn't mean that those who have worse credit can't apply for the necessary cash advance in Arizona.
- First of all, there're some companies in Arizona providing similar Payday loan services to borrowers with both good and bad credit scores.
- Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
- Find out how to improve your credit score and do your best to do it fast.
- Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.
Compare top legit Payday Lenders in Arizona:
Arizona Payday Loans news - latest changes
The latest attempt to impose changes on Payday Loans laws in Arizona was made in 2017. There was an attempt to revive Payday Loans, but an unsuccessful one.
Still, some new forms of fast cash advances do exist in Arizona. These are Flex Loans and Consumer Access Lines of Credit which greatly resemble Payday Loans by their high cost. They say, a bill allowing flex loans passed in 2015, effectively brought payday lending in Arizona back to life.
Arizona Payday Loans' historical background
| before 2010 | It was legal to take out a Payday Loan for 5 days and more with the maximum loan amount of $500 and 459% APR on a 14-day $100 loan. |
| 2008 | The Arizona Payday Loan Reform Act was defeated and payday lending stayed prohibited. |
| 2010 | As the APR was strictly limited to 36% and violating lenders were pursued by law, many of them stopped their activity in Arizona. |
| 2017 | There was an attempt to revive payday loans by opening up “Consumer Access Lines of Credit“, or “Flex loans”., though unsuccessfully. |
Arizona Payday Loan alternatives
If you're looking for an instant cash advance in Arizona but not a Payday Loan, consider other alternative ways to get the necessary funds:
- Apply for an Arizona Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
- Take out a Car Title Loan in Arizona if you own a vehicle to use as collateral.
- Sell some of your valuable stuff online or at a pawn shop.
- Apply for Arizona Tribal loans. Tribal lenders can avoid the state's caps and limits as they operate outside the state's regulations.
- Consider borrowing from a bank or credit union. U.S. Bank, the fifth-largest bank nationally, is lending up to $1,000 to cash-strapped consumers through its Simple Loan program.
- Qualify for one of Federal or Arizona government assistance programs: Low Income Energy Assistance Program (LIEAP), Arizona Health Care Cost Containment System (AHCCCS), Supplemental Nutrition Assistance Program (SNAP), The Emergency Food Assistance Program (TEFAP), Commodity Senior Food Program (CSFP), Congregate and Home Delivered Meals, Cash Assistance, Child Care Assistance.
