One reason for online payday loan growth is that it is more difficult to regulate such companies than brick-and-mortar stores, said Tom Feltner, policy director for Woodstock Institute, an economic development non-profit that has studied the industry.

Last month, for example, Cash America said it would close a third of its Ohio stores due to tougher state restrictions. Advance America, another leading payday lender, also said it might have to trim its Ohio network.

Legislators take heed.  If you want a tightly regulated industry, don’t force storefront lenders to shut down.  Consumers need short-term credit and will find it on the Internet.