Arizona Payday Loan Laws, Explained
Last updated: July 20, 2026
Key takeaway
Key takeaway: Arizona once allowed payday lending under a specific statutory carve-out — but that carve-out had a sunset date, and it wasn't renewed. Here's what that means for borrowers today.
Why the Old Payday Law No Longer Applies
Arizona's original payday-lending statute was written with a built-in expiration date. When it expired on June 30, 2010, the legislature did not renew it, and consumer loans carrying an APR above 36% (plus limited authorized fees) became illegal in the state starting July 1, 2010. A 2008 ballot measure, Proposition 200, would have kept a version of payday lending going, but voters rejected it — cementing the industry's exit from the state.
The 36% Usury Cap Today
Under Arizona Revised Statutes § 6-632, lenders operating in the state are barred from charging above a 36% APR usury ceiling. That single rule is what actually governs short-term lending in Arizona now — there's no separate "payday loan" license or product carved out above it.
Other Products That Still Exist
While traditional payday loans are gone, other high-cost credit — like auto title loans — have operated under different regulatory structures in Arizona and drawn their own scrutiny from consumer advocates. If you're evaluating any short-term credit offer in Arizona, checking whether it actually complies with the 36% cap is the first filter worth applying, regardless of what the product is called.
| Factor | Arizona Rule |
|---|---|
| Payday lending authorization | Expired June 30, 2010; not renewed |
| Current usury cap | 36% APR (A.R.S. § 6-632) |
| 2008 ballot measure (Prop 200) | Rejected by voters |
| Traditional payday loans | Not legally offered in the state |
Since the payday product itself isn't legally available in Arizona, comparing personal-loan and installment offers priced within the 36% cap is the practical path forward.
Sources: NCSL — Payday Lending State Statutes · CFPB — Payday Loans
Arizona Payday Loan FAQ
Are payday loans legal in Arizona?
No. Arizona's payday lending law expired on June 30, 2010 and was not renewed, so traditional payday loans are no longer legally offered.
What is the interest rate cap in Arizona?
Consumer loans are capped at 36% APR under A.R.S. section 6-632, a rate too low for the traditional payday model to work.
Can you still get a payday loan in Arizona?
Not a traditional one. Voters rejected Prop 200 in 2008, and the statutory carve-out that once allowed payday lending has lapsed.
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