Personal finance story came out of the Sacramento Bee lamenting the criticism we always receive: High-cost, triple digit APR.

The payday loan industry … says they’re a lifesaver for cash-strapped individuals, especially in a choppy economy.

And we say, so what? Millions of customers across the country have used payday advances responsibly and appreciate having somewhere to turn when they need quick access to credit. Analysts estimate payday advances are used by 19 million American households.

The article also discussed a bill that would raise the limits on payday loans – from $300 to $500 – passing the state Assembly.

There are a couple things we want to keep in mind when it comes to restricting access to credit: Loan limits punish borrowers who have proven they can meet their financial obligations and discriminates against those who don’t have access to a wide range of financial options. Research shows that heavy-handed restrictions on payday loans have caused consumers to bounce more checks, pay more late fees, and experience more credit problems.

A CRL “study” claims that payday lenders are less popular than liquor stores:

“Polls and elections from across the country have demonstrated over the years that the only folks who really like payday loans are payday lenders,” said Paul Leonard, director of the California office of the Center for Responsible Lending, which sponsored the poll.

Today’s SacBee (CA) editorial calls for a rate cap on payday loans.  No new arguments here:

Nationally, Congress in 2007 passed a 36 percent rate cap on payday loans for military families. Fifteen states and the District of Columbia have passed similar interest rate caps for all their residents.

The military is relying on charity through its relief societies.  DC residents are using Internet lenders or driving to Virginia for loans.   Maybe the state of California can get into the small business.  It’s not like they have any financial problems.

Today’s Sacramento Bee article by Claudia Buck blames payday lenders for the financial troubles many members of the military have found themselves in.  The article failes to mention that, as of October 1, 2007, payday lenders do not lend to military personnel due to the restrictive rate caps that would cause lenders to lose money on each loan.  Geesh…if you are going to blame payday lenders, at least get the facts right.

This Sacramento Bee story details Monday’s action in the California Assembly’s Banking and Finance Committee.