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 opt-in rules take effect on July 1, 2010. Currently, individuals who find they need a Cash Advance loan to avoid fees are becoming worried that short-term lenders will no longer be available and they will have no help in the coming months.

With families being forced to spend more on fees and no alternatives available, less will be spent on retail markets. In some cases, due to new banking practices, families can become so buried in fees that they are unable to pay for necessities, increasing the number of dependants on an already thin state budget during the middle of a recession.

The most intriguing aspect of this issue lies in the fact that the banks who have argued against the use of short-term loans are now creating their own cash advance loans after seeing the potential income earned by payday lenders. While this number falls far short of the revenue from overdraft fees, it is still substantial enough to cause question from Arizona’s voters.


About the Company: Speedy Cash was formed in 1998 with the purpose of assisting individuals with lower credit to cash checks and offered a Cash Advance Loan product to help others avoid the high cost of late and overdraft fees. Over the last 11 years, Speedy Cash has found that the majority of their borrowers have mid-range income levels, low to mid level credit scores, and view their Payday Loan as a better alternative to bouncing checks, paying high bank fees, and dealing with pawn shops. Continuing their goal of helping families alleviate debt, Speedy Cash is now paying cash for gold jewelry and other unwanted items.