Arizona Payday Loans

Consumer Lenders Act applies. Ariz. Rev. Stat. Ann. §§ 6-601 et seq.
Status: Prohibited

Payday loans are prohibited in the state of Arizona, pursuant to Ariz. Rev. Stat. Ann. §§ 6-601 et seq.

Payday Loan Lending Laws in Arizona

In 2010, the Arizona law allowing payday loans by payday lenders expired, effectively ending the practice within the state. In more recent terms, no companies offering payday loan services have been physically operating in the state since 2010, although some traditional in-state lenders have tried to work around the expired law.

In 2012, for example, the Arizona Daily Star reported two of the state’s major national banks had been offering advances on their customers’ direct deposits, a practice very similar to regular payday loan lenders since a post-dated check is required as part of the repayment process. The news story also pointed out some companies were offering lines of credit and overdraft protection to purchasers of prepaid debit cards, the fees and interest sometimes climbing to astronomical rates.

Consumer lenders operating in Arizona must be properly licensed, and loans of $1,000 or less must not have an annual interest rate of more than 36 percent.

What is a payday loan?

Generally defined as short-term financial loans between $100 to $500, payday loans are known for their short repayment windows and high interest rates. The popularity of cash advance loans in other states rests with the easy application process. Unlike traditional loans through banks and creditors, a potential borrower applying for a payday loan does not need to produce collateral or have a good credit rating. Furthermore, depending on the state in question, a borrower might be able to take out multiple loans with different lenders.

The ease of the application process, coupled with the lack of requirements as to how a borrower can use the loaned funds, can provide borrowers with a sense of security when faced with unexpected financial problems. If a borrower needs to pay the water bill before their next paycheck, a payday loan can help them cover the bill and repay the lender in the next pay cycle. But the attractive qualities go hand-in-hand with the dangers of these loans. Without proper planning and responsible use, a borrower can miss the repayment window and be hit with extra fees and charges, which can compel them to take out further loans to address the original. This danger, called a debt cycle, has been the motivating factor in many states to either regulate or prohibit the business practice.

The best way to avoid a debt cycle rests with preparation and execution. Any potential borrower should take the time to search for the best loan terms, have a plan to repay the loan quickly, and do so before the deadline expires. Due to the stress of emergency situations, however, a potential borrower might be tempted to ignore those plans in favor of quick solutions.

Loan Options

While payday loan centers cannot operate physically in the state of Arizona, residents in need of short-term financial solutions do have other options.

If a traditional loan with a bank or creditor does not appear to be a realistic solution, an Arizona resident can still apply for loans over the internet through the numerous lending websites. This is allowed through similar financial regulations applied to credit cards. Current regulations do not prohibit a borrower living in Arizona from applying for a loan with a lender operating in Florida.

However, a borrower should keep in mind that an application may not guarantee approval and any loan terms offered will be legally binding, requiring the borrower to pay back the borrowed funds. It is therefore in the best interest of the borrower to proceed with caution and not to accept such responsibility lightly.

Lending Rules*

Lenders in the state of Arizona are legally required to comply by the following limitations according to Consumer Lenders Act applies. Ariz. Rev. Stat. Ann. §§ 6-601 et seq.:

Small Loan Rate Cap:
36% per year plus 5% fee
*The information displayed may not be current. For the most recent information, please visit

Regulatory Information

If you have a complaint against a Arizona Cash Advance location you can contact your state regulator below:

Arizona Department of Financial Institutions
Financial Enterprises Division, 2910 N. 44th Street, Suite 310 Phoenix AZ 85018
(800) 544-0708
(602) 381-1225

Arizona Check Cashers

Below you can find Arizona check cashers in the following cities:

Arizona Statistics**

The following information is key demographic data for the state of Arizona from the Census bureau.

Total Population:
Median Household Income:
Poverty Rate:
Median Gross Rent:
High School Graduate or Higher:
Bachelor's Degree or Higher:
**The information displayed may not be current. For the most recent information, please visit

Borrow Responsibly

Short-term loans are, by design, best used to address unexpected financial problems only when all other options have been ruled out. With the exception of business loans, a borrower should not use loaned funds for long-term financial plans. Potential borrowers can also use the prohibitions of Arizona law to their advantage: since they cannot just go down the street and apply for a short-term loan, the borrower potentially has the time and ability to properly research the terms of an online lender before accepting the responsibility of paying the funds back. is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website; however, all information is presented without warranty or guarantee. may receive compensation from our partners, including, but not limited to, clicking on links and lead generation.