Arizona

When getting a payday loan in Arizona, it’s important to realize that lenders must follow certain guidelines as to what they include in their loan agreement. All loan agreements in Arizona must have the trade name of the business, the transaction date, the amount of the payday loan, the amount to be paid by the lender, and a statement of the total amount plus fees. Arizona law says that the total amount must be expressed in dollars and have the annual percentage rate clearly displayed on the contract. Payday loan agreements in Arizona must also have a disclosure statement that explains customers their privacy rights.

Arizona law sets limits on the amount of money that payday lenders can offer. Under current Arizona law, payday lenders are only allowed to lend loans at least $50 and no more than $500. In addition, payday loan lenders can only have one service agreement with a customer at a time. If for any reason the customer is unable to pay the loan back, the lender must draw up a new agreement form. Under the new agreement, the lenders have the right to charge a fee for each transaction, so long as it doesn’t go over 19%.

In Arizona, when ever a customer gets an extension on their loan the payday loan lender must provide them with written information in English and Spanish about credit counseling and financial education services that are available. Under current Arizona Law, any payday loan institution offering cash advance loans must be licensed with the state.

Here are some other facts about Arizona laws pertaining to payday loans:

• All written agreements must have a number and address they can write to for complaints.
• All payday loan lending institutions must have a chart displayed with a table listing their annual Percentage Rate (APR).
• If a customer closes their account or stops payment, the lending institution has the right to seek civil remedies in court.