Information About Payday Loans in Arizona

Payday loans are a popular and well-known feature of the lending and borrowing market now, due to the fact that they offer a loan of a small amount, borrowed over a short period of time, which the borrower simply pays back in full once their paycheck comes in. In principle, it’s a great idea, and lots of people have taken out payday loan at some point or another, or know somebody who has. The limits, caps and regulations on the loans vary depending on the state you’re in (and some states including Arizona have actually made payday loans illegal), but generally speaking, the loans can be for any amount between $100 and $1000, with an average term of fourteen days before the loan has to be repaid. Typically, the shorter a loan term is, the most expensive it turns out to be, with higher interest rates and more costly fees and charges added on.

The loans can be borrowed from check cashing stores, pawn shops, payday loan stores (often found operating online), toll-free phone numbers and sometimes from rent-to-buy companies. Payday loan lenders usually don’t check the credit rating of borrowers before they take out the loans, so it’s fairly easy for people who wouldn’t have been granted a loan from a bank to get their hands on loan money from payday loan lenders. Unfortunately, with it being so easy to get these loans, many people get tied up in the cycle of having to take out multiple loans in order to pay off previous ones. It’s because the loans can pose a very real danger to borrowers’ financial situations that many US states have passed laws and acts to limit the damage to consumers and to prevent them from being loaned more money than they can pay off in the first place. And that is why it’s important to read up on the regulations regarding payday loans in your state, so that you know what your rights are as a borrower and so that you know where to go to for help and advice.

The Consumer Lenders Act makes payday loans in the state of Arizona illegal. Whilst small loans are still legal, there exist a number of limits and caps that have been put in place, in order to prevent borrowers from too much financial harm. As part of this, small loans in Arizona can have a maximum interest rate of 36% APR (annual percentage rate), plus a 5% fee.

The regulatory body for small loans and payday loans in Arizona is the Arizona Department of Financial Institutions and the main contact of the regulatory body for loans is Robert Charlton, Assistant Superintendent of Banks. To ask questions, complain or get help and advice you can contact the Financial Enterprises Division at 29210 N. 44th Street, Suite 310, Phoenix, AZ 85018, or alternatively you can call the division directly on (800) 544-0708.

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