AZ HB2550

Allows consumer lenders to charge alternative fees for loans between $200-$3,000 instead of standard finance charges, including an acquisition fee (up to 10% or $75, whichever is less, with $15 minimum) and monthly account handling charges tiered by loan amount (4% to 1% per month depending on principal balance).

Requires lenders to assess borrower's ability to pay by preparing a budget showing positive net cash flow and obtaining a credit report before loan approval; lenders must retain and provide copies of both documents to consumers.

Establishes loan terms of 5-12 months minimum/maximum for amounts up to $1,500 and 5-24 months for amounts $1,500-$3,000, with all loans precomputed in substantially equal monthly payments and no interest-only periods permitted.

Prohibits prepayment penalties, limits loan renewals to three times per calendar year, prohibits insurance sales with these loans, imposes a 10% late fee after 10 days overdue, and restricts legal action to accounts overdue 90+ days.

Prevents lenders with substantially the same ownership from having simultaneous loans to the same consumer and requires monthly credit bureau reporting unless the consumer requests otherwise; section expires June 30, 2019.