Why payday lenders are suffering from legislative regulations so much? The answer to this question is easy. The main banks and other “Wall Street” finance institutions need to be protected. In one of the latest articles we have mentioned that last year banks earned near $38 billion on overdraft fees and certainly they want this tendency to continue and even to spin up. But payday loan lenders can be a real threat for them and their increasing profits, because more and more borrowers are addressing to payday lenders in order to avoid enormous overdraft fees they need to pay banks by delay in payment.

Due to this fact, the banks enlisted the support of considerable number of lobbyists, consisting of more than 1500 federal representatives and 73 congressmen, in accordance with payday pundit, in order to influence legislators of Washington and make them pass financial bills. These bills are aimed at the payday lenders and other short-term lenders that are not responsible for the financial crisis of 2008 at all, rather than to the banks, which really caused the crisis.

If legislators had conducted some researches, they would notice that lenders like payday lenders have no attitude to the economic problems that the country faced a couple years ago. Moreover, they are trying to solve these problems by providing some cash to customers who need urgent money but can’t receive approval from the most banks.