Payday loans have been illegal in Arizona since July 1, 2010. Intended as a short-term cash solution to help supplement payment for expenses and costs between the borrower’s paydays, payday loans are non-secured and come with high interest rates. This makes it easy for those in need of fast money to receive funds without a credit check or other forms of collateral like a car or property.

Not only does state law make it illegal for AZ lenders to offer paycheck loans to Arizona borrowers, former AZ Governor Terry Goddard put Operation Sunset in action, which continues to aggressively pursue any lending institution offering a payday loan within the state. If a potential consumer receives any form of advertisement or solicitation for a payday loan from an Arizona lender, whether in the form of an email, TV ad, or advertising display or sign, the payday lender could be reported and face serious charges under AZ law.

If you happen to have a payday loan that you acquired in Arizona before the July 1, 2010 cutoff date, this does not mean you are no longer obligated to pay back your loan. However, it also does not obligate you to turn your payday loan into a title loan. Should your lender insist that you do so, consult the terms of your lending agreement or speak with a lawyer to determine your rights.

If you’re in need of a lawyer, visit any of these websites to request a referral for an accredited law counselor. Please note: Most referrals require a fee to process.


Other forms of lending that are still available to residents of Arizona are title loans, small bank loans, and credit union loans. Learn more about how how auto title loans work by reading our “How It Works” page