Consumer Credit Regulation: 9.3.4 Arizona
In July of 2010, Arizona allowed a law that formerly authorized payday lending to sunset, thus effectively ending the practice as it had existed in the state. The loans that were formerly covered under the statute now fall under the state’s Consumer Lenders Act, which provides for no greater than a 36% rate of interest on loans of $3,000 or less.184 This cap effectively prohibits the practice of payday lending in Arizona.