Payday Loans in Arizona: Laws, Rate Caps, and Your Options (2026)

Payday loans in Arizona are no longer legal. The state’s deferred presentment law, which licensed payday lenders, expired in 2010, and no deferred presentment chapter remains in Title 6 of the Arizona Revised Statutes. A consumer loan of $10,000 or less now needs a consumer lender license, and licensed lenders are capped at 36% a year on the first $3,000. The license rule reaches lenders located in other states, so online lenders are covered too. Car title loans remain legal at much higher rates. This page covers what the law says, what to do about an illegal loan, what legal small loans cost, and which of the lenders we review serve Arizona. For how Arizona compares with every other state, see payday loan laws by state.

Arizona payday loan rules at a glance

Rule	Arizona
Legal status	Not permitted: the deferred presentment law expired in 2010
Consumer loans	A license is required for loans of $10,000 or less (A.R.S. 6-601, 6-603)
Online lenders	Covered, whether located in Arizona or another state (A.R.S. 6-603)
Interest cap	36% a year up to $3,000 and 24% above it, or a blended rate (A.R.S. 6-632)
Origination fee	Up to 5% of the principal, never more than $150 (A.R.S. 6-635)
Late charge	5% of an installment unpaid seven days after it is due (A.R.S. 6-635)
Credit insurance	Optional except property insurance; cancel within 30 days for a full refund (A.R.S. 6-636)
Unlicensed loan	Void: no right to collect or keep principal, charges, or fees (A.R.S. 6-613)
Overcharged loan	$5,000 or less: voidable, no right to principal, charges, or fees; above $5,000: finance charges lost
Title loans	Legal, capped at 10% to 17% a month by loan size (A.R.S. 44-291)
Regulator	Department of Insurance and Financial Institutions (DIFI), difi.az.gov
Military borrowers	36% federal MAPR cap under the Military Lending Act

Why payday loans cannot operate in Arizona

A payday loan works by charging a flat fee, often $15 or more per $100, for a loan due in two weeks, which comes to several hundred percent APR. After the deferred presentment law expired, Arizona left no room for that price.

• The license requirement. A.R.S. 6-601 defines a consumer loan as one of $10,000 or less, and A.R.S. 6-603 says no one, whether located in Arizona or another state, may engage in the business of a consumer lender without a license from DIFI.
• The rate cap. A.R.S. 6-632 limits licensed lenders to 36% a year on the first $3,000 of principal and 24% a year above that. A two-week payday fee is many times that rate.
• The fee caps. The origination fee is limited to 5% of the principal, never more than $150, and none can be charged again on a refinance within a year of a prior origination fee (A.R.S. 6-635).

Online lenders

Section 6-603 applies to a lender “whether located in this state or in another state,” and to anyone who seeks to avoid the law by any device, subterfuge, or pretense. An online lender offering payday-style loans to Arizonans needs an Arizona consumer lender license, and a licensed lender cannot charge payday rates. A lender that tells you Arizona law does not apply because it is located elsewhere is wrong about the statute.

If you already have a high-interest loan in Arizona

If a lender charged you more than Arizona law allows:

1. Check the license. Search the DIFI licensee records at difi.az.gov, or ask DIFI whether the lender holds an Arizona consumer lender license.
2. Know what you owe. Under A.R.S. 6-613, a consumer loan made without a required license is void, and the lender has no right to collect or keep any principal, charges, or fees. If a licensed lender overcharged you on a loan of $5,000 or less, the loan is voidable and the lender has no right to collect or receive principal, charges, or fees; above $5,000, it loses the finance charges.
3. Revoke the debit authorization. Tell the lender in writing, and tell your bank, that you revoke permission to debit your account. Keep copies.
4. File a complaint. With DIFI at difi.az.gov, with the Arizona Attorney General at azag.gov, and with the Consumer Financial Protection Bureau.
5. Get advice. A legal aid office or consumer attorney can tell you whether your loan is void or voidable and what to do about payments you already made.

What legal small loans cost in Arizona

The legal route for a small loan is a lender licensed under the consumer lender law. It can charge up to 36% a year on the first $3,000, plus an origination fee of up to 5% of the principal, never more than $150.

Take a $1,000 loan at 36% a year:

Term	Monthly payment	Total repaid	Interest
6 months	About $185	About $1,108	About $108
12 months	About $100	About $1,206	About $206

These are our own amortization figures, not a quote. A $50 origination fee (5% of $1,000) comes out of the money you receive, which raises the APR to about 55% on the 6-month loan and about 46% on the 12-month loan by our arithmetic. Your Truth in Lending disclosure states the actual APR and total of payments. Credit insurance is optional, and you can cancel it within 30 days for a full refund (A.R.S. 6-636). Banks and credit unions lend under their own charters.

Title loans: legal, and far more expensive

Arizona still allows car title loans, made under the secondary motor vehicle finance law. A.R.S. 44-291 caps the rate each month by loan size:

Amount financed	Maximum rate per month	Per year
$500 or less	17%	204%
$500 to $2,500	15%	180%
$2,500 to $5,000	13%	156%
More than $5,000	10%	120%

A $1,000 title loan at 15% a month costs $150 in interest for a single month, and the lender can repossess the car if you fall behind. Compare that with the $1,000 consumer loan above, which costs about $206 in interest over a full year.

Your rights

1. No payday loans. A lender making consumer loans of $10,000 or less without an Arizona license is breaking the law, even if it is online, and its loan is void.
2. Capped licensed loans. A licensed consumer lender cannot exceed 36% a year on the first $3,000, or the origination and late fee caps.
3. Optional insurance. Credit insurance other than property insurance cannot be required, and you can cancel it within 30 days for a full refund.
4. The federal Truth in Lending box. The APR, finance charge, amount financed, and total of payments must be disclosed before you sign.

What happens if you cannot repay

If the loan is from a licensed lender, call before the payment is late and ask about a revised schedule; the late charge is capped at 5% of the missed installment, and the lender can pursue an unpaid balance as a civil debt. If it is from an unlicensed lender charging payday rates, follow the steps above before paying anything more. Read what happens if you default on a payday loan for how collection works, and how to escape the payday loan cycle if you are caught in repeated borrowing. If the real problem is a bill you cannot cover, start with what to do when you can’t make this month’s payment.

Alternatives worth trying first in Arizona

A payday loan is not a legal option in Arizona, so these are the routes that are, roughly cheapest first:

Option	What it costs	The catch
Payment plan on the bill itself	Often nothing	You have to ask before the due date
211 referral to rent, utility, or food help	Nothing	What is funded varies by county
Federal credit union PAL I	Up to 28% APR plus an application fee of up to $20; $200 to $1,000, 1–6 months	One month of membership first; one PAL at a time
Federal credit union PAL II	The same caps; up to $2,000, 1–12 months	Not every federal credit union offers one
Licensed consumer lender loan	Up to 36% a year on the first $3,000, plus an origination fee of up to 5% (never more than $150): about $108 interest on $1,000 over 6 months (above)	Confirm the lender’s DIFI license before you apply

The credit union limits come from federal regulation (12 CFR 701.21(c)(7)): no more than three PALs in six months, and no rollovers. Call 211 to reach the local referral line. Employer pay advances and earned-wage apps cost more than their small fees suggest; payday loan alternatives that actually work has the numbers for each option. If an installment loan is on the table, installment loans vs. payday loans explains how to compare total cost.

If you do borrow, borrow from an Arizona-licensed lender, bank, or credit union, and check the APR in the Truth in Lending box before you sign.