I hate payday lending. Its one of those things like gambling – a victimless crime – in that the customers know what they are doing, know its bad for them, but do it anyway. The payday lenders are barely legal in this state and routinely get sued, lose, go bankrupt, and then start up another company it seems. While some more libertaria types might see payday lending as “freedom to contract” I see them as shady fly-by-night businessmen looking for a quick buck. If its such a great thing, maybe it should just be a service at our local bank. Instead, its run out of crummy retail shops, where they don’t have to invest anything because they will surely go out of business soon.

I was looking at the history of the check cashing laws, and found this interesting paragraph from an article way back in 2001.

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An attempt by Sen. Cliff Hoofman, D-North Little Rock, to repeal the Check Cashers Act failed in the Senate in February. Hoofman had hoped to get another vote on the repeal, but complained that his attempt was sidetracked by a parliamentary procedure by Sen. Doyle Webb, R-Benton.

Webb had been the Check Cashers Act’s Senate sponsor in 1999, when only two senators — Mike Beebe, D-Searcy, and Mike Ross, D-Prescott — voted against it. Ross is now U.S. congressman for the Fourth Congressional District.

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Doyle Webb is the same attorney ( and former Chief of Staff for Lt. Gov. Rockefeller) who made himself the beneficiary of a will and the subject of severe ethical scruitiny.

This Week’s supreme court case concerning payday lenders, to me, is really a non-issue and merely said that the payday lenders get to litigate the issue of whether the state is properly regulating them.
I won’t bore you with the details about why the Sup. Ct. didn’t address teh constitutional issues – it was a delay and was consistent with how they handle similar problems with declaratory judgments in much less controversial cases.

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I don’t think payday lending is right, moral, or legal. But, the easiest way and the best way to take care of it is through legislation, not the court system. Legislation authorized payday lending, and apparently it might take leglislation to end it. This case isn’t going away but I hope some courageous leglislators, backed by the new governor, will do the right thing and put these guys out of business for good.

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