TIME magazine reports that the credit crunch is moving from Wall Street to Main Street, so this pundit wants to know, how is it affecting you, loyal reader?  Do you live in a state that already limits payday lending or in Ohio, Arizona, Illinois or other city that is considering new regulations?  Do you use payday loans or do you just like having the option if you needed it? 

Maggie Thurber does a great job speaking against Issue 5 in Ohio:

Since when is it the role of the government to track what you borrow, when and how much? Since when is it the role of government to tell you how you can use the money you borrow? Since when is it the role of the government to decide whether or not you need or should take a class in finances? Since when did Ohioans think it was okay to grant government this kind of intrusion into our daily lives?

Even if you think payday lenders should be restricted by state law to certain interest rates, how can you possible approve of giving the government such authority over peoples’ lives?

Eventually you have to pay back what you borrow and most of the time paying back includes a fee for the privilege of spending someone else’s money, be it an upfront fee like a payday loan or an interest based fee like a credit card.  In the last few years it seems like consumers and banks alike have forgotten this, leaving us in the situation we are now.

Now, after giving people more free credit than they ever needed (this pundit still gets 4 card offers a week), the credit card companies are reminding their clients to “use it responsibly“…a little to late, guys.

An interesting piece on Customer Service Agents at credit card companies is up on CNN.com right now.

These former CSA’s allege that they were told to push people to take out more credit than they needed and rushed through the details.

CFSA member companies are required to post in large print and explain to customers the terms of each loan they make.  Why aren’t credit card companies held to more stringent measures?  Afterall, credit history is becoming more and more important in the US.

What if you don’t have either until payday?  This is where a payday loan would come in handy, but the Fond du Lac Reporter doesn’t even see it as an option.

If your credit is poor and you can’t get a credit card and you rely on debit you can quickly get into trouble

Today, most banks will approve even the smallest debit card purchase — then hit you with a fee of $35 or more.

Yet we don’t hear howling about that kind of predatory lending….

Kim Stevens likes making her own financial choices and eloquently argues why Ohioans should want them too in today’s Mansfield News-Journal.

Consumer Federation of America, Consumers Union and the National Consumer Law Center have given two more states failing grades for offering choices to consumers.  Illinois and Missouri received straight F’s for having a multitude of short term credit options available to consumers.

Here’s a story from Mississippi about a new payday lending alternative.  The Payday Pundit thinks this is great.  The more choices consumers have when it comes to short-term financial products, the better!  However, because you’ve come up with an alternative doesn’t mean you should replace existing products.  Let the market work and let consumers choose which product they like better.  There is one thing in this announcement that makes this pundit think that this new loan will not replace payday loans outright:

There are no fees to participate in the BankPlus program, but a credit check is required, and the credit score affects the loan amount for which a customer is approved. Customers also must complete a financial literacy program before they receive the loan and they receive credit counseling once they are approved

One reason people take out payday loans is because there is no credit check required.  Imagine if you’re a busy person and need money today, something tells me you won’t have time to receive credit counseling before you need the money.

Boston’s National Consumer Law Center and Washington’s Consumer Federation of America give the Bay State two F’s for giving their citizenry financial choices.  There is something very wrong with this picture.