Many Americans are increasingly turning to high interest, short term loans to try to make ends meet, but a brief overview of payday lending’s problematic setup shows that it’s often a false solution to a false problem. more

LOVE AND MONEY make people crazy. Love of money makes them even crazier, especially if they are lawmakers. That must be the explanation for why our own state lawmakers are back at the table talking about allowing payday lenders to

“Payday loans are sold as two-week credit products that provide fast cash, but borrowers are actually indebted for an average of five months per year,” concludes a Pew research report. more

The Russell family of Kirkland, Wash., makes about $230,000 with Charles Russell, 43 years old, working as a systems analyst for Microsoft Corp. According to the U.S. Census Bureau, that puts them among the top 5% of American households. But their affluence might not be apparent based on the way Mr. Russell conducts his personal finances. He has no bank account, having dumped it due to irritation over fees and overdraft penalties. Instead, for more everyday transactions he uses a debit-card offered by NetSpend Holdings Inc. 

Allies of payday lenders are urging the state Legislature again to raise the cap on the high-interest loans, enabling desperate borrowers to dig themselves into even deeper holes. It's a bad idea, and lawmakers shouldn't consider raising the current limit on lending without more meaningful consumer protections than the bill's sponsor has proposed