Don't Let Online Lenders Skirt State Law

Tell Arizona Lawmakers


Don’t open the doors to more predatory lending!


HB 2240 increases the cost of pawnbroker loans to 240% APR - at these rates, we can be sure predatory lenders will exploit this law!


As currently written, HB2240:


  • Increases the overall cost of pawnbroker loans and allows rates of 2% every 30 days and a pawn service charge of ANY amount, as long as it doesn’t exceed 20% of the loan amount for each 30 day period. The result? 240% APR—higher than even the highest car title loan rate of 204% for a loan of $500 or less.


  • Shortens the period of time consumers have to pay off a pawn loan and get back their possessions. The 90 day pawn loan term is being slashed to 30 days plus a 30 day “grace period.” Borrowers who renew the loan at the end of the initial loan plus grace period must pay for the full 60 days. The law could even allow unlimited renewals, but the current language is unclear.


  • HB 2240 aligns the pawn statute with the title loan business model of one-month balloon payment loans at triple-digit rates. This is a slippery slope toward allowing title loans under the pawn law at 240%, even higher than currently permitted for title loans.


  • Keeps supervision of pawn loan industry with county sheriffs, which is problematic if HB 2240 permits predatory loans that should be under the supervision of the Department of Financial Institutions. 


Tell Arizona Lawmakers 

Online lenders must be held accountable to state law



The Arizona Legislature
in 2020


Arizona’s 54th Legislature, Second Regular Session convened on Monday, January 13, 2020.


2020 Progress of Bills


Senators introduced 682 bills before deadline on February 5, more than they have at any point in the past two decades.

2020 CEI Bill Tracking Datasheet


HB2240 (Kern)

Alters the pawnbroker statute to authorize even more high-cost loans to Arizonans who cannot afford to pay them off

  • Passed with amendment in the House Commerce Committee on 2/4 by 5 votes to 4 on party lines.