Car Title Loans

Arizona no longer allows payday loans. A car title loan provides a short-term loan option for people who do not have good credit or do not have a bank account, using their car as collateral. 

Below is information that may be helpful if a creditor files a lawsuit against you, but it is not a substitute for legal advice. There are other rules and laws that may apply to your situation, but these are common rules and laws that apply in civil cases.


  • In Arizona, the lender is only required to verify, but not keep a copy, of the vehicle's title. 
  • Car title loans can help you if you have an urgent need but they have very high interest rates and can include high administrative fees and costs. While they may help you in the short term, they are very expensive, even if you pay them off quickly.
  • If you are unable to make your agreed-upon payments, the loan company may offer to refinance the loan. If that happens, you may pay administrative fees and costs again. 
  • If you stop paying, the loan company may continue to apply the high interest rate to the amount owed until it is paid off or until they get a judgment from a court. 
  • If the lender did not keep your title or did not repossess your car, you may be sued for the amount owed on the loan plus the interest.
  • Your balance may continue to grow even after judgment at the contract interest rate, which can be very high. If that happens, at the end of one year, you may owe more than 3 times the amount you originally borrowed.
  • Some creditors will allow you to work out payments so you do not owe as much. 
  • A creditor may file a lawsuit if you stopped paying or owe past money on a loan.
  • If a judgment is entered against you, the creditor may garnish your wages or bank account.

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