A cash advance loan is a short term loan that is easy to qualify for and provides access to fast cash that can be used to cover emergency financial dilemmas. Every state in the country has its own regulations and laws that govern how cash advances are processed to residents of that state. Lenders in each state are required to abide by the laws that are set forth in their state or in the state that they are providing loans to residents in. Arizona cash advance laws govern how lenders provide loans in Arizona and also how much or how many loans an Arizona resident may have outstanding at one time.
Arizona has very strict laws that govern how cash advances are set forth. These laws are designed to help the borrower by preventing them from becoming even more financially unstable as a result of borrowing a cash advance. Unlike some states, Arizona does not have a safe harbor lending regulation that protects lenders but rather provides protection to the borrower to prevent borrowing that will otherwise impede on a borrowers financial situation.
All cash advance lenders in Arizona are required to be licensed with the state in order to provide loans to Arizona residents. Additionally, all loan agreements that are made between lenders in Arizona and residents of Arizona are required to have contact information such as the telephone number and address of the lender so that borrowers can easily make contact with the lender if they have a complaint.
Residents of Arizona are only allowed to have one cash advance outstanding at a time and the amount of the loan may not exceed $500. The minimum cash advance loan period in Arizona is 5 days but there is no standard governing a maximum amount of time for loan repayment in Arizona. However, Arizona cash advances may only be rolled over or extended for a total of 3 times before the loan becomes immediately repayable without the option for further extension.
Arizona cash advance lenders are not allowed to charge more than 15% of the total loan. What this means is that for every $100 borrowed on a cash advance in Arizona, the lender may only charge $15. This law governing fees on Arizona cash advances applies to both the initial loan as well as any extensions that are given on the loan. Additionally, Arizona cash advance lenders may charge triple digit interest rates which can make a cash advance very costly, especially if not repaid right away. The average interest rate for a cash advance in Arizona is 459% which means that a $100 cash advance that is paid off over the course of a year can easily accrue a total of $459 in interest.