The Motley Fool, which periodically comments on happenings in the payday lending industry, has this to say about recent developments in Arkansas.   There are still some sensible observers out there. 

“Arkansas’s attorney general wants to shut down payday lenders in his state, and he’s sent letters to some 60 companies doing business there, telling them to pack up, ship out, and — oh yeah! — forgive all the debts of the people who borrowed money from them…For individuals needing small bridge loans — well, tough luck! You can’t have one. 

The Motley Fool has a number of great tools and tips for personal finance.  The Payday Pundit loves these tools because they empower individuals by placing clear information on personal finance choices into individuals’ hands. 

One which the Pundit is enjoying exploring today is the “How much am I spending?” calculator. 

The calculator allows you to input your actual spending habits and your goals and then calculates how much you have available for investment and gives a projection of what that investment would amount to in 10 years. 

The Motley Fool picks up on the GAO report finding that, in 2006, consumers paid $36 billion in bank fees.  The Fool is highly critical of the government but also critical of consumers who don’t understand how much they’re paying in fees.  

How does this relate to payday lending?  Storefront payday lenders collected $6.5 billion in fees in 2006.  And payday lending customers understand exactly what they are paying per $100 for their two-week loan.  Members of CFSA are required to post their fees on poster-size displays in large type.

Yet, nobody is calling for a ban on banks.