What a payday loan costs — before Arizona’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Arizona
- Rate cap
- 36% APR small-loan cap; storefront payday lending ended in July 2010 when its enabling law sunset. Tribal lenders claim exemption.
- Key law
- Arizona consumer-lender 36% cap (A.R.S. § 6-632); the payday statute expired in 2010 after voters rejected Proposition 200 (2008).
- Enforcement
- Arizona’s own enforcement against tribal lenders is comparatively weak; no major recent state action verified.
Arizona voters rejected the payday industry’s Proposition 200 in 2008 by a 3-to-2 margin despite $14.8M in industry spending; storefront payday loans went extinct in 2010.
What it means for a Arizona borrower
Non-tribal payday loans are effectively barred by the 36% cap, but tribal lenders continue lending online to Arizonans under sovereignty claims at APRs up to ~700%. A non-tribal loan over the cap is challengeable.
If you already have a payday loan in Arizona
A loan that violates Arizona’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- File a complaint with the Arizona Attorney General and the Department of Insurance and Financial Institutions.
- A non-tribal loan above 36% may be void or unenforceable.
Cheaper first — try these before a payday loan in Arizona
Payday Loans and tribal lenders in Arizona
Many online lenders that market payday loans to Arizona residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Arizona residents and how state law applies to them, see the Arizona tribal-lending page.
Tribal loans in Arizona →Frequently asked questions
Are payday loans legal in Arizona?
In Arizona, payday loans are legal but tightly limited. The state caps loan size, fees or rollovers, so a legal payday loan looks different — and costs less — than the ~400% APR norm, and any lender exceeding those limits is out of compliance.
What is the maximum payday loan rate in Arizona?
36% APR small-loan cap; storefront payday lending ended in July 2010 when its enabling law sunset. Tribal lenders claim exemption.
What can I do about a payday loan I already have in Arizona?
Because Arizona restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible. File a complaint with the Arizona Attorney General and the Department of Insurance and Financial Institutions. This is general information, not legal advice.