January 8, 2010 – With the relatively high ratio of payday loan businesses compared to other states, Arizona has become one of the national benchmarks for the industry. In 2008, Arizonans overturned a ballot that would allow payday loan lenders to remain in business through the 2010 deadline, while also lowering loan fees and requiring repayment plans, with a voting percentage of 59.5 to 40.5. The results of proposition 200 have still not fully been realized as government officials continue to argue how short-term lenders affect different demographics. Throughout 2009, as the recession continued to worsen, banks raised the cost of overdraft and nonsufficient funds services to make up the revenue lost to stricter lending requirements and fewer customers. One particular credit union in Arizona, traditionally known for lower fees and working with their customers, raised overdraft fees to $35 per incident and modified their nightly processing to accept larger debits first, followed by smaller deductions, and finally processing any held deposits last. As 2010 continues to progress, traditional financial institutions are pursuing this fee-based model with the intention of gaining as much income from NSF transactions before the Federal Reserve’s...