Arizona Title Loan Laws & Regulations


We continue to see many changes with title loans in Arizona and all types of payday loans in general. By itself, this is not unexpected. A few states ban title loans outright; most payday loans are not allowed in Arizona. So we should expect more changes over the next few years as this industry evolves. Let’s get right into what’s different and what updates and revisions to title loan laws in Arizona we expect to see over the next few years.


Arizona Title Loan Laws And Rules

Always check that your lender has an active Arizona Department of Financial Institutions license. You can look this up on their website, which features an AZ license lookup page. Once you know your company has a license, you will have that extra peace of mind to know they will follow the regulations already in place. Arizona is a bit different from other states regarding online loans.

Most traditional payday loan offers with rates over 36% are not allowed in AZ. You can still find Arizona lending products with rates above 36%. These options include installment loans, tribal lending products, and car title loans.


Auto Title Loans Are Legal In The State Of Arizona

We know of many title loan companies that offer loans in this state, and yes, secured loans are currently allowed in Arizona. As always, you can meet with someone at any of the state’s retail loan locations. Or you apply online with Desert Title Loans and get approval in 15 minutes or less. As the name of our site suggests, we work with customers throughout Arizona interested in online title loans and registration loans. Our knowledgeable reps can help answer questions about title loans in Arizona. We can also assist applicants in neighboring states like California and Nevada.


Changes To Expect With Car Title Loan Regulations For 2023

In recent years, bills have been discussed in the Arizona State House that attempted to bring back traditional payday loans. We’ve even seen similar bills that would increase the options for Phoenix title loans. The difference is semantics, as they were called Flex Loans and line of credit loans. One example is House Bill 2496, which would have permitted many cash advance loans. These loans would come with interest rates above the current threshold of 36%.

It’s not always an easy sell to bring back loans with higher rates. Lenders often say they can’t provide online title loans with rates that are capped at 36%. Since this type of loan is for consumers with bad or no credit, the default rate is very high, and there’s a significant risk on their end. Also, the lending environment is ripe for fraud as people try to exploit banks and lenders who provide funds for those who would never qualify with traditional companies.


City & County Regulations For Title Loans in Arizona

We know there will be attempts to bring payday loans and other cash advance offers during the next legislative session. Further, we hear some advocacy groups will attempt to limit the fees and interest that Arizona car title loan companies can charge. There’s always talk of increased regulation for car title loans, but it seems more likely in Arizona.

Some cities have discussed changing their regulations to limit or control title loan lending in their jurisdiction. Nothing is final yet, but larger cities like Flagstaff, Tempe, and Mesa have progressed in regulating the title loan industry. We will continue to update this page as we hear more about municipal and state regulatory updates that affect car title loans in the Grand Canyon State.


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