From a letter in yesterday’s Augusta Free Press from the Center for Consumer Freedom:

Following restrictions that limit short-term payday lending access for borrowers, many cash-strapped Virginians are left wondering where to turn (”Shannon releases plan to protect consumers on payday lending,” Oct. 16 AFP). As payday lenders close their doors, their former customers are forced to resort to more expensive alternatives to make ends meet.

That’s the crux of it.  People need credit and will seek it where ever they can.