Regarding our post about the New Mexico governor’s race the other day:

How can a candidate say that they are not trying to eliminate and industry, but make a promise to make it a crime if elected governor?

Not sure what to make of this coming a day after a Democratic Gubernatorial calls for a ban.  From the story: 

A state lawmaker who helped push through a 2007 law to limit payday lending abuses said Wednesday she plans to file legislation this January to impose tougher restrictions.

The news of Rep. Patricia Lundstrom’s intention comes a day after Democratic gubernatorial candidate Diane Denish announced she would work to make predatory lending practices, including in payday lending, a crime if elected governor.

“I’m certainly not for eliminating the industry, but for stricter regulations on it,” the Gallup Democrat told The Independent. “I’m saying let’s get our arms around it.”

Interesting that the head of an institution that would benefit from the end of payday lending stands up with a political candidate to discuss a  ban.  It happened yesterday in New Mexico:

Ben Heyward, president of First Financial Credit Union, said Tuesday that payday lenders don’t benefit anyone.

“This tremendous need for short-term loans didn’t exist until payday lenders got here,” said Heyward, who helped lobby lawmakers to pass the 2007 law and attended Denish’s news conference Tuesday.

“They created this demand,” he said.

The demand for short-term lending didn’t exist before payday lenders?   Rarely do you here anything so dumb from the mouths of a businessman.   I wonder how he would describe the demand for overdraft protection and bounced check fees.

We’ll have to keep our eye on this:

A lawsuit will be filed Monday to determine if Attorney General Gary King is protecting consumers from predatory lending or overstepping his bounds.

Fastbucks will file a countersuit against King after he sued the company and claimed it was taking advantage of people.

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{Payday loan company attorney} Streubel said King is trying to go even further, which is a power intended for the legislature.

“They have considered micro loans every session since and have decided the industry is working pretty well,” Streubel said.

Fastbucks’ attorney responded to King’s claims by saying the company provides a valuable service.

“Often the ability to get instant cash is the difference between getting evicted from their home, getting utilities turned off, getting food and medicine for their families,” Streubel said.

PDLindustryblog says so.