Payday Loans in Arizona: What Replaced Them Since 2010
No. Payday loans are not legal in Arizona. The law that allowed deferred presentment (payday) lending expired on June 30, 2010, and the state no longer licenses payday lenders. Consumer loans above 36% a year, plus authorized fees, have been illegal since July 1, 2010. Other kinds of loans still exist, and we list title and installment stores in the state.
Our directory lists 92 stores in Arizona: 70 title loan stores, 20 installment loan stores and 2 pawn shops. It lists no payday stores. Here is what the law says about each product.
What happened to payday lending
Arizona's payday law had an end date. The former A.R.S. §§ 6-1251 to 6-1263 ran out on June 30, 2010, and the Arizona Department of Insurance and Financial Institutions (DIFI) says payday lenders are no longer licensed. The department has an FAQ on the question: "What happened to the payday lender DIFI used to license?" Our Arizona payday page explains the status.
The wording matters. The law that allowed payday loans expired. It was not replaced by a new ban statute in our data. What now limits small loans is the consumer lender law, below.
The 36% cap on consumer loans
Arizona's consumer lender law covers closed-end loans of $10,000 or less, whether unsecured or secured by property (A.R.S. § 6-601(7)). Licensed consumer lenders are capped as follows (A.R.S. § 6-632):
- 36% a year on a consumer loan of $3,000 or less (§ 6-632(A)(1));
- on a larger loan, 36% on the first $3,000 and 24% on the part above $3,000 (§ 6-632(A)(2)(a)).
Our arithmetic: if the whole $2,000 were owed for a full year at 36%, the interest would be $720. In an installment loan you pay the balance down each month, so the interest is lower than that. Authorized fees can be added on top, which is why the APR (annual percentage rate, the yearly cost with fees included) is the number to compare. See how APR works.
Two more rules help borrowers. A licensee may charge a late fee of 5% of an installment not paid in full within seven days of its due date (§ 6-635(A)(1)). If you prepay a precomputed consumer loan in full, the lender must refund the precomputed finance charges that apply to the fully unexpired months (§ 6-634(B)). When no rate is agreed in writing, interest is 10% a year (§ 44-1201(A)(2)).
Installment loans in Arizona
An installment loan is repaid in set payments over months, and the cap, late-fee and refund rules above apply to licensed consumer lenders. We list 20 installment loan stores in Arizona: 17 OneMain Financial and 3 Republic Finance, counting by brand. For the contrast with payday, see installment loans vs. payday loans.
Title loans in Arizona
Here we have to be careful. Our rules data holds no verified rule specific to title loans in Arizona, and we did not find one on an official page we could read. So we do not say which statute sets their rates or terms, and we do not state a cap for them. Ask a title lender in writing which license it operates under, what the APR is and what happens to the vehicle if you miss a payment. DIFI is the agency to ask.
We list 70 title loan stores in Arizona, all TitleMax. For how title loans work in general, read title loans explained.
Pawn shops in Arizona
A pawnbroker must be licensed by the sheriff of the county where it does business, with a separate license for each pawnshop (A.R.S. § 44-1627(A)-(B)). We list 2 pawn shops in Arizona.
How to check a lender's license
DIFI is the state regulator. Its license search portal lets you look up a company by name, and the main site is difi.az.gov. A sheriff's office handles pawn licenses. If a company offers a payday-style "deferred deposit" loan in Arizona, ask which license it holds, since the state ended that license in 2010. We also have an online lenders page for Arizona.
State rules that can matter
| State | What the rule says | Law |
|---|---|---|
| Arizona | The payday lending law expired June 30, 2010; the state no longer licenses payday lenders. | Former A.R.S. §§ 6-1251 to 6-1263; DIFI FAQ |
| Arizona | Licensed consumer lenders: at most 36% a year on loans of $3,000 or less. | A.R.S. § 6-632(A)(1) |
| Arizona | Part of a loan above $3,000: at most 24% a year. | § 6-632(A)(2)(a) |
| Arizona | The consumer lender law covers closed-end loans of $10,000 or less. | § 6-601(7) |
| Arizona | Late fee of 5% of an installment unpaid within seven days. | § 6-635(A)(1) |
| Arizona | Prepaying a precomputed loan earns a refund of finance charges for unexpired months. | § 6-634(B) |
| Arizona | Pawnbrokers are licensed by the county sheriff, one license per pawnshop. | § 44-1627(A)-(B) |
From our state rules data, last checked October 9, 2026, each confirmed in the official statute or regulator text. Rules change. Check the Arizona page and the lender directory.
Where the stores we list are
We list stores in 21 Arizona cities. Phoenix has 27 in our data and Tucson 23, followed by Mesa (11), Glendale (5) and Chandler (4). Smaller places such as Flagstaff, Yuma and Sierra Vista have 2 each. Of the 92 stores whose hours we hold, 72 are open Saturday, 70 open late and 2 open Sunday. Call first. Or use lenders near me.
Options to consider first
These are general options, not recommendations of a particular provider:
- A credit union payday alternative loan (PAL). A federal credit union may offer PALs I of $200 to $1,000 over 1 to 6 months, or PALs II up to $2,000 over 1 to 12 months, with an application fee of at most $20 (12 CFR 701.21(c)(7)). The NCUA allows up to 28% while its 18% ceiling stands.
- A payment plan. Ask the biller, landlord or clinic for more time before the due date.
- 211. Call 211 or visit 211.org for local help with rent, utilities and food.
Frequently asked questions
Are payday loans legal in Arizona?
No. The law allowing them expired on June 30, 2010, and the state no longer licenses payday lenders.
What is the maximum interest rate in Arizona?
A licensed consumer lender can charge at most 36% a year on a consumer loan of $3,000 or less, and 24% on the part above $3,000. Consumer loans above 36% plus authorized fees have been illegal since July 1, 2010.
What is the default interest rate if nothing is agreed?
Interest is 10% a year unless a different rate is agreed in writing (A.R.S. § 44-1201(A)(2)).
Are title loans legal in Arizona?
We list title loan stores in Arizona, but we hold no verified title-specific rule, so we cannot say which law governs their rates. Ask the lender for its license and the APR in writing, or ask DIFI.
Who licenses pawn shops in Arizona?
The sheriff of the county where the shop does business, with a separate license for each shop.
Sources
- What happened to the payday lender DIFI used to license?, Arizona Department of Insurance and Financial Institutions, in our state rules data, last checked October 9, 2026.
- A.R.S. § 6-601, § 6-632 (also fetched October 11, 2026), § 6-634, § 6-635, § 44-1201, § 44-1627, Arizona Legislature, in our state rules data, last checked October 9, 2026.
- DIFI license search portal, from our regulator data, checked October 9, 2026.
- 12 CFR 701.21, Loans to members (payday alternative loans), eCFR, checked October 11, 2026.
- 211.org, United Way Worldwide, checked October 11, 2026.
We are not a lender. This is general information, not legal advice. Rules change; check Arizona's current rules and the lender's own disclosures before you borrow.
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