There’s a debate going on over payday loans in Utah at the Standard-Examiner.

Reader Wendy Gibson makes the case for consumer choice.

The editorial board makes the usual paternalistic arguments.

CRL spent $140,000 lobbying in the second quarter, according to the Associated Press.

Associated Press reporting.

Federal Deposit Insurance Corp. Chairman Sheila Bair is pushing back against key pillars of the Obama administration’s financial overhaul plan, saying they wouldn’t survive in Congress and calling her own alternatives more viable.

In an interview with The Associated Press, Bair said Congress won’t approve two major parts of the package: Expanding the Federal Reserve’s authority to regulate the largest financial companies and giving a proposed new consumer protection agency examination and enforcement powers over banks.

Samantha O’Neil of the Center for Consumer Freedom offers a defense of payday loans to the Dallas Morning News.

Lisa Kaiser over at the Express Milwaukee claims to ponder whether Wisconsin needs payday lenders, but actually just recycles every misguided and CRL-fueled argument in the book.  What particularly interests me is when she finally gets around to discussing alternatives.  I’ll applaud her for actually looking out for consumers who do need short term credit, but this doesn’t really sound like an alternative to me:

Those seeking a loan must become members of a credit union, which typically means opening an account and depositing $25. Credit unions provide financial counseling and, like banks, will consider one’s ability to pay off the loan. Henzig said credit unions offer loans as little as $500, and some will even issue a loan of $100 if someone truly needs that money.

So how long does it take to become a member of a credit union?  Are there fees associated with that beyond the $25 initial deposit?  CFSA payday lenders offer financial counseling and of course they consider a borrower’s ability to pay off the loan–having the loan paid off is how they get their money back.  Apparently if you need a $100 loan, you have to convince someone that you really really really need it–certainly the kind of decision I prefer for someone else to make for me.  But, at least in the event that you can’t convince someone you need a $100 loan, you’ll be welcomed to borrow more than you need in the form of a $500 loan.  I assume this $500 loan has some sort of interest or fees associated with it, but certainly there’s no need to include that in the story.  After all, had the story included those interest and fees, we could see if the credit union actually saves consumers money…particularly while they’re forcing consumers to borrow more than they need.

Nothing like good reporting to start your Friday.

I don’t think that this WalletPop article actually makes an argument that lives up to the title of the piece, but I do always appreciate their reliably one sided reporting.

While so-called consumer groups celebrate their “victory,” are they also trying to find ways to provide Arkansas consumers with affordable short-term credit options? Doh! Clearly WalletPop and the “consumer” groups are forgetting something in Arkansas.

I can’t help myself.  This guy is an ignoramous.

Discussed over at PDLindustryblog.

A new video.

The New York Times seems to really want to see the creation of a Consumer Financial Protection Agency:

Ben S. Bernanke, chairman of the Federal Reserve, insists that the Fed can protect consumers effectively against defective or dangerous financial products. He and his allies are therefore signaling opposition to — and even defiance of — key parts of the Treasury’s plan for regulatory reform, which involve setting up a new Consumer Financial Protection Agency.

The Fed is a well-regarded institution in general and Mr. Bernanke is currently riding a wave of personal popularity and prestige, but are these claims vis-à-vis consumers plausible?

Not really.

As I’ve said before, there is no magic in a government agency.  It depends on the competency of the people running it.