Payday loans in Arizona
Since the law permitting payday loans expired on 30 June 2010, Arizona has not allowed them; consumer loans now follow the 36% Consumer Lender rate cap.
- Payday lending
- Banned
- Max cost
- None in the law
- Top amount
- None allowed
Are payday loans legal in Arizona?
No, since June 30, 2010, payday loans in Arizona have been illegal, and the Arizona Consumer Lender law governs personal loans. For loans of $3,000 or less, that law limits annual interest to 36 percent plus any allowed fees. On amounts above $3,000, the cap is 36 percent for the first $3,000 and 24 percent for the remainder. To make or advertise loans of $10,000 or less, one must obtain a state Consumer Lender license.
A loan of $5,000 or less becomes voidable if a licensed lender overcharges, so you may cancel it. At that point, the lender has no right to the amount first lent, finance charges, or fees of any other kind. Through a claimed tribal front, CashCall charged up to 169 percent, leading the Attorney General to win $4.8 million in 2022. To verify that a lender is legal, you can check the license list from the Arizona Department of Insurance and Financial Institutions. You can report any payday loan sign you see to the Arizona Attorney General.
- Although DIFI no longer licenses payday lenders, Arizona did license them until the law expired on 30 June 2010.
- The 2008 industry proposal to keep payday lending, Proposition 200, was defeated by a 1,271,717 to 860,607 vote.
- CashCall paid $4.8 million in restitution in 2022. The Attorney General secured it over loans marketed via a tribal-affiliated front, with rates up to 169%.
- Overcharging by a licensed lender makes any loan at or below $5,000 voidable; principal and charges then cannot be collected.
- Making or advertising loans of $10,000 or less requires you to hold a DIFI Consumer Lender licence.
Arizona payday loan laws
- Law in force
- The Consumer Lender law in Title 6, Chapter 5 of the Arizona Revised Statutes (deferred presentment lending ended in 2010)
- Cited as
- A.R.S. 6-632
- Fees under the law
- For consumer loans of three thousand dollars or less, the rate is thirty-six per cent.
- Installment lending limits
- For a consumer loan up to $3,000, 36%; if above $3,000, the first $3,000 at 36%, the rest at 24%, or one blended rate
Also checked against law.justia.com. Full statute text.
Online lenders that list Arizona
Nine companies we track say they lend in Arizona: 3 online installment lenders, 5 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Arizona
By suing CashCall over high-rate loans fronted by a company with a claimed tribal link, the Arizona Attorney General won a 2022 consent judgment worth $4.8 million in restitution.
On the immunity claim tribal lenders make, see are tribal loans legal.
Five tribal lenders we track list Arizona as a state they lend in. Two of the five publish an APR, from 99% to 725%.
| Lender | Posted APR |
|---|---|
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Arizona and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Arizona | Banned | None in the law | None allowed |
| California | Allowed | $17.65 per $100 borrowed | The check itself can be written for no more than $300. |
| Nevada | Allowed | None in the law | The customer's expected gross monthly income sets a ceiling: the loan and any other outstanding loans combined must not go over 25 percent of it. |
| New Mexico | Banned | 36% APR | None allowed |
| Utah | Allowed | None in the law | no limit in state law |
Arizona loans with no credit check
Installment loan rates: For a consumer loan up to $3,000, 36%; if above $3,000, the first $3,000 at 36%, the rest at 24%, or one blended rate.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Arizona
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Arizona Department of Insurance and Financial Institutions (DIFI).
- Had trouble with a lender? Report the lender.
Sources for Arizona
- DIFI stopped licensing payday lenders after the law governing them expired on 30 June 2010.; On 1 July 2010, consumer loans with rates above 36% plus authorised fees became illegal.; People who spot payday loan signs are told by DIFI to contact the Attorney General.difi.az.gov
- The consumer loan rate cap stands at 36% for loans of $3,000 or less.; The first $3,000 of a loan above $3,000 has a 36% rate, while the rest has a 24% rate.azleg.gov
- A second check shows the Justia copy of 6-632 lists the same 36% rate.law.justia.com
- If a consumer loan of $5,000 or less has excessive charges, it is voidable and the lender loses both principal and charges.azleg.gov
- Loans of $10,000 or less require a Consumer Lender licence.; A loan amount of $10,000 or less marks the threshold for requiring a licence.difi.az.gov
- The 2008 ballot pamphlet stated that Prop 200 would repeal the scheduled end of the payday licensing program on 1 July 2010.apps.azsos.gov
- The Prop 200 Payday Loan Reform Act appears in the official canvass.; Yes votes for Prop 200 totaled 860,607 in the official canvass.; Prop 200 failed with 1,271,717 no votes in the official canvass total.apps.azsos.gov
- An AG consent judgment dated 9 March 2022 orders CashCall to pay $4.8 million restitution for loans with rates up to 169%.; A company with a claimed tribal affiliation was used as a front by CashCall, the AG alleged.azag.gov
- Every financial enterprise the state licenses shows up in the DIFI licence search.difi.az.gov
- DIFI accepts complaints regarding lenders and unlicensed financial services.difi.az.gov