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.
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