Arizona
Arizona Payday Loan Companies Form Organization
Companies that make money providing faxless payday loans have formed an organization they say is designed to “reform” their industry.
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Payday Loans in Arizona
Payday Loan Laws in Arizona (2026)
No — storefront payday lending is effectively banned in Arizona. The law that allowed it expired on June 30, 2010, after voters rejected an industry-backed extension (Proposition 200) in 2008. With no special carve-out, payday-style loans must obey Arizona's 36% usury cap — which they can't profitably meet — so the product disappeared.
| Status | Prohibited — the payday-lending law sunset in 2010 |
|---|---|
| Usury cap | 36% per year on the first $3,000 (24% above) |
| How it ended | Statutory sunset, June 30, 2010 |
| Ballot history | Voters rejected Proposition 200 (the industry extension) in 2008 |
| Effect | Storefront payday loans are no longer offered |
| Regulator | Department of Insurance and Financial Institutions (DIFI) |
| Law | Payday exemption sunset (2010); usury cap A.R.S. § 6-632 |
What Arizona's payday ban means for you
- Arizona was the 17th state to end payday lending — the enabling law simply expired in 2010 and was not renewed.
- Without a carve-out, consumer loans must obey the 36% usury cap, which storefront payday loans can't meet.
- Online lenders are not exempt. A payday loan offered to an Arizona resident above 36% APR is unlawful.
- Some lenders shifted to auto-title or larger consumer-installment loans — read the terms, as those carry their own (often high) costs.
Problem with a lender? File a complaint
Consumer lending in Arizona is overseen by the Department of Insurance and Financial Institutions. To report a violation or an illegal lender, use the online complaint form.
Legal options instead of a payday loan
Legal alternatives in Arizona include a credit-union small loan or payday-alternative loan, an employer paycheck advance, or nonprofit credit counseling. See our guide to payday loans and alternatives.
Your debt rights in Arizona
A lender can garnish wages in Arizona only after it sues and wins a court judgment, and federal law then caps how much can be taken. Arizona does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
- Can a payday lender sue you?
- Can payday loans garnish your wages?
- Do payday loans affect your credit?
- Payday loan statute of limitations
- How many payday loans can you have?
- How to get out of payday loan debt
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Arizona Department of Insurance and Financial Institutions (DIFI) before borrowing. Last reviewed 2026.
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Frequently asked
Are payday loans legal in Arizona?
No. The law authorizing payday loans expired on June 30, 2010, and payday-style loans must now obey Arizona's 36% usury cap — which storefront payday lenders cannot meet.
Why did payday lending end in Arizona?
The payday-lending exemption was set to sunset, and in 2008 voters rejected Proposition 200, an industry-backed measure to extend it. The law expired in 2010.
Can I get a payday loan online in Arizona?
Any loan above the 36% usury cap is unlawful in Arizona, including from online and out-of-state lenders.
Who regulates lending in Arizona?
The Arizona Department of Insurance and Financial Institutions (DIFI).
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