I’m confused.Reuters reports,  “A group of 24 state attorneys general is urging Congress to move quickly on legislation that would create a controversial new federal agency to police financial products, according to a letter released on Tuesday.”

Hmmm…The Consumer Financial Protection Agency would step on the toes of states when it comes to regulating financial services.

Ohio will soon join four other states that allow teenagers to gamble in full-fledged casinos or slots parlors. A column in the Plain Dealer discusses this move by Ohio state legislators..the same legislators that outlawed payday lending.

Says Rev. Gregory Hogan Sr., pastor of First Baptist Church of Barberton:

“The state is moving in a premeditated way to target the money of people least capable of incurring or financing debt. We’re targeting children. We’re telling 18-year-olds that it is OK for them to mortgage their financial futures.

“That makes the state-sponsored casinos worse than the private payday lenders,” he said.

Blogger News discusses the column:

You cannot attempt to run payday lenders out of town while simultaneously endorsing a regressive tax on people of lower incomes. That’s what state lotteries are, that’s what legalized gambling is, that’s what Keno is, that’s what slot machines are – regressive taxes.

Bloomberg’s got the Federal Reserve report.

At least the Wisconsin State Journal recognizes the need for short-term credit and encourages the development of alternatives, but why advocate to kill payday lenders?  If the alternatives created are better, wouldn’t customers naturally use them?  The unfortunate truth is that, in general, credit union alternatives aren’t cheaper and even the FDIC is having a difficult time encouraging banks to undertake small dollar, short-term loans.  Payday lenders stay in business because no one can offer more affordable short term credit.

In USA Today:

Bill Hardekopf, CEO of LowCards.com, a free consumer resource site about credit cards, says some cardholders can expect more fee increases in September and October, some may lose reward points because of a late payment, and some will encounter new card offerings with high annual fees.

From FoxBusiness:  Credit Card Fees Rising? Consumer ‘Protection’ Act May Be to Blame.

As the article points out, some “consumer protections” have unintended consequences that end up harming, whether than helping, consumers.

The authors of this piece miss the mark by advocating for an agency that they claim will prevent future economic meltdowns…yet the agency would regulate financial services that had nothing to do with the meltdown.

Reuters report on continued efforts to help consumers in order to sure up the economy.

Lawrence Meyers takes payday loan critics to task.