Minnesota lawmakers say a loophole in state law is allowing lenders to take money away from people who want an advance on their paycheck.

Sen. Kevin Dahle of Northfield and Rep. Jim Davnie of Minneapolis are due to discuss legislation Wednesday to change payday lending practices.

The most abusive and predatory lenders were not federally regulated. More than 50 percent of the subprime mortgage loans made in 2005 and 2006 were originated by lenders not subject to federal supervision. Mortgage brokers, finance companies and payday lenders made toxic home and consumer loans with few limits — loans with little or no documentation — commonly known as “liar loans.”

Okay, then clean up the mortgage mess and leave payday lending alone.  We had nothing to do with the financial meltdown.

To qualify for one of the society’s loans, Hogrebe said, the applicant must open a $25 savings account at the credit union and agree to attend a class on managing finances. Then volunteer mentors meet with people individually to help them work on their budgets.

The goal is to help the working poor over some unforeseen difficulty.

In the past, the society has advocated against the predatory lending practices of payday loans, but this new program takes the next step by offering people an alternative to those loans.

The credit union assumes no risk, but it does handle the paper work and the repayment of the loans.

Obviously, not as convenient as a payday loan, but we wish them well.

For more than a decade, the nation’s payday lenders have battled the perception that they operate on the shadowy “fringe” of the mainstream financial system, outside the long reach of government regulators and rules dictating prudent lending.

Now, payday lenders have a powerful new ally in their quest for respectability: big banks.

A few of the nation’s largest banks — including Minneapolis-based U.S. Bancorp, Wells Fargo & Co. of San Francisco, and Fifth Third Bancorp of Cincinnati — are now marketing payday loan-type products, with triple-digit interest rates, to their checking account customers.

Competition, competition, competition.   That’s what will keep rates at their lowest levels possible.

“We need a consumer financial products agency that can protect consumers from tricky financial documents and will allow consumers to make real choices based on clear disclosure,” {Rep. Keith}Ellison said during a conference call promoting the bill he co-sponsored. The agency is part of the sweeping overhauls of the financial system that the White House is proposing in the wake of the Wall Street crisis that spread to Main Street.