Payday Loans are NOT Legal in Arizona

Beware of predatory lending

Payday Lenders in Arizona

Payday loans, also known as cash advances, are short-term loans that typically require borrowers to repay the loan by their next paycheck. However, in the state of Arizona, payday loans are illegal under the Arizona Revised Statutes (ARS 6-632). This law prohibits lenders from offering payday loans and effectively protects Arizona residents from the high interest rates and fees associated with these loans. Instead, residents of Arizona are encouraged to explore alternative options for financial assistance, such as personal installment loans, credit unions, or community assistance programs.
While payday loans are illegal in Arizona, residents must still remain vigilant against scams, particularly those conducted by online lenders. Unscrupulous online lenders may attempt to deceive borrowers by offering payday loans despite the legal prohibition. It is essential for Arizona residents to be cautious and conduct thorough research before engaging with any online lender. They should verify the lender’s license, review the loan terms and fees carefully, and avoid lenders who demand upfront fees or promise guaranteed approval. By staying informed and vigilant, residents of Arizona can protect themselves from potential scams and make informed decisions regarding their financial well-being.

Payday Loan Laws

Payday loans are illegal in the state of Arizona and have been since 2010. The state’s Revised Statutes, specifically ARS 6-632, have enacted stringent measures to protect its residents. These laws unequivocally prohibit payday loans, safeguarding Arizonans from the snare of exorbitant interest rates, unfair fees, and cycles of debt.

Loan Terms and Conditions

prohibited

Whenever you need emergency financing, you can get loans online from a legit lending companies. Check your rates and terms before applying for cash advance online.

History of Arizona Payday Loans

The history of payday loans in Arizona has been marked by significant shifts and legislative reforms. Prior to 2010, payday lending was legal, allowing borrowers to obtain loans for up to 5 days with a maximum amount of $500 and staggering APRs of 459% on a 14-day $100 loan. However, in 2008, Arizona Proposition 200, which aimed to revive payday lending practices, was defeated. The expiration of exemptions in 2010 led to a transformative change as payday lenders were subjected to a 36% APR cap, prompting many to withdraw their operations from the state. Attempts were made in 2017 to reintroduce payday loans under the guise of “Consumer Access Lines of Credit” or “Flex loans,” but these efforts failed, ensuring that payday loans remain illegal in New Hampshire.

How to file a complaint

The Arizona Department of Insurance and Financial Institutions accepts complaints by mail or email. They will review all complaints for compliance with the Arizona laws regarding consumer lending.

Arizona Loan Debt Relief

How to Get out of Loan Debt?

Escaping loan debt in Arizona requires a strategic approach and careful financial planning. First, evaluate your current financial situation by assessing your income, expenses, and outstanding debts. Create a realistic budget that prioritizes debt repayment and minimizes unnecessary expenses. Consider contacting your lenders to negotiate new repayment terms, such as extended payment plans or reduced interest rates. Additionally, explore debt consolidation options to streamline multiple debts into a single manageable payment. Seek professional advice from credit counseling agencies or financial advisors who can provide guidance on debt management strategies. Finally, focus on improving your financial habits by practicing responsible spending, building an emergency fund, and avoiding further debt accumulation. With determination and proactive steps, it is possible to overcome loan debt in Arizona and achieve financial stability.

Types of Quick Loans in Arizona

Alternatives to Payday Loans in Arizona

Personal Loans

Among the various loan options available in Arizona, personal loans are highly sought after by borrowers for their versatility. They serve multiple purposes, including home improvements, debt consolidation, and unexpected expenses. With fixed interest rates and manageable monthly payments, personal loans provide borrowers with a budget-friendly approach. Lenders often extend more favorable terms, such as lower interest rates and flexible repayment plans, to individuals with excellent credit. On the other hand, borrowers with less-than-ideal credit may face higher interest rates and stricter eligibility criteria, as imposed by lenders.

Bridge Loans

For individuals in Arizona seeking short-term financing to facilitate the purchase of a new property while still owning their existing one, bridge loans offer a viable solution. These loans come into play when conventional loans are not readily available or when quick access to funds is crucial. Typically, lenders require an equity interest in the property and may limit the loan-to-value ratio to a maximum of 80%. Eligibility for a bridge loan usually entails providing evidence of the ability to close the sale or secure a conventional loan within a specified timeframe, typically four months or less. Bridge loans, categorized as non-mortgage or specialty financing, are designed to be repaid within a short period, typically ranging from 1 to 3 years.

Home Equity Loans

Homeowners in Arizona have the option to leverage the equity in their properties through home equity loans. These secured loans allow borrowers to tap into their home equity as collateral and access cash at a fixed interest rate with a predetermined repayment period. Home equity loans serve various purposes, including covering unexpected expenses, consolidating debt, or making home improvements. While they may offer potential tax benefits, it's important to note that defaulting on these loans could lead to foreclosure.

Bad Credit Loans in Arizona

Individuals in Arizona with poor credit or limited credit history can still explore loan options through bad credit loans. These specialized loans often come with higher interest rates and additional fees compared to traditional loans. Qualifying for bad credit loans may require collateral or a co-signer to mitigate the higher risk associated with these borrowers. Despite the challenges, bad credit loans can be utilized for debt consolidation, home repairs, or unexpected expenses, providing an opportunity to rebuild creditworthiness over time.

Arizona Small Business Loans

Small business loan options in Arizona:

  • SBA loans: The SBA offers a variety of loan programs, including 7(a) loans, 504 loans, and microloans, to help small businesses access funding for things like, such as working capital, equipment purchases, and real estate investments.
  • Arizona Commerce Authority (ACA) Small Business Loans: The ACA offers financing programs specifically designed to support small businesses in Arizona. These loans provide working capital, equipment purchase, and business expansion funding.
  • Arizona Microcredit Initiative (AMI) Loans: MI is a nonprofit organization in Arizona that provides microloans to small businesses that may not qualify for traditional bank loans. These loans are designed to support businesses owned by low- to moderate-income entrepreneurs.
  • Business Lines of Credit: Offer a revolving credit facility, allowing businesses to access funds as needed. They provide flexibility and can be used for short-term working capital, inventory management, or other operational expenses.
  • Equipment Financing: Enables businesses to acquire or lease equipment needed for their operations. Lenders provide funds specifically for the purchase or lease of equipment, with the equipment itself often serving as collateral.

Arizona Student Loans

Veterans and active-duty service members in Arizona have access to VA loans, a financing option supported by the U.S. Department of Veterans Affairs. These loans are offered by private lenders but carry the advantage of VA guarantee. VA loans often require little to no down payment, making homeownership more attainable for those who may face financial constraints. Additionally, VA loans typically do not require mortgage insurance and often come with lower interest rates. The flexible credit requirements of VA loans enhance eligibility for veterans and active-duty service members, ensuring accessibility to financing opportunities. This valuable benefit enables veterans and service members to embark on the path to homeownership, even when traditional loan options may seem out of reach.

Arizona Student Loans

Many options are available to Arizona students to help finance their college education. These options include:

  • Federal Student Loans: Low-interest loans backed by the federal government that can be used to pay for education expenses.
  • Education Refinance Loans: Refinancing your existing student loans with a private lender can be an option to consolidate your loans, potentially lower your interest rate, and simplify repayment. Several private lenders offer education refinance loans specifically designed for borrowers looking to manage their student loan debt more effectively.
  • Direct PLUS Loans: These federal loans are available to graduate or professional students and parents of dependent undergraduate students. They allow borrowers to cover the remaining educational costs not met by other financial aid. The interest rates and repayment terms are set by the U.S. Department of Education.
  • Private Student Loans: Loans offered by private lenders that can be used to pay for education expenses, with interest rates and terms that can vary widely.

Arizona Income Information

The recently released 2021 U.S. Census reports show Arizona having a median household income of $65,913, somewhat lower than the national median of $69,021. Arizona’s economy thrives on a diverse range of sectors including tourism, aerospace, manufacturing, healthcare, and technology, supported by a robust labor market, business-friendly policies, and a growing population. Arizona’s median household income varies by county, with Maricopa County being the highest at $67,799, and Apache County being the lowest at $33,967, the state’s poverty rate was 12.8% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 12, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Arizona. Accessed on May 12, 2023.

Arizona Payday Lender Complaints

Below are trends associated with some payday lenders in Arizona, as reported to the Consumer Financial Protection Bureau.
Company Name Count
Big Picture Loans, LLC 19
Delbert Services 18
CURO Intermediate Holdings 12
LDF Holdings, LLC 10
CASHCALL, INC. 7
CNG FINANCIAL CORPORATION 7
Total Complaints 202

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 12, 2023.

Most Common Issues

Complaint type Count
Charged Unexpected fees or interest 77
Struggling to pay loan 22
Received a loan didn’t apply for 22
Can’t contact lender 19
Can’t stop withdrawals from account 18

What are the main reasons Americans apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%

Payday Lenders by City

Frequently Asked Questions

Are online payday loans legal in Arizona?

No, online payday loans are not legal in Arizona as the state law prohibits payday lending in all forms, including online lenders.

Can I get a payday loan from a tribal lender in Arizona?

No, tribal lenders offering payday loans are also prohibited from operating in Arizona. The state’s laws extend to all payday lending activities, regardless of the lender’s affiliation.

Are there any exceptions to the payday loan ban in Arizona?

No, there are no exceptions to the payday loan ban in Arizona. The state has implemented strict regulations to protect consumers from the predatory practices associated with payday loans.

Can I take out a payday loan from a neighboring state if I live in Arizona?

The payday loan ban in Arizona applies to residents regardless of where the loan is obtained.

What are the consequences for payday lenders operating illegally in Arizona?

Payday lenders who operate illegally in Arizona may face legal consequences, including fines, penalties, and other enforcement actions pursued by the Arizona Attorney General’s Office and the Arizona Department of Financial Institutions.

What should I do if I have been a victim of a payday loan scam in Arizona?

If you believe you have been a victim of a payday loan scam in Arizona, you should report the incident to the Arizona Attorney General’s Office or the Arizona Department of Financial Institutions for further investigation.
Scroll to Top