In reply to Gavin.

It may be cold, but it is commerce an they should be free to run their business as they see fit. You keep going on about the "big banks" and how they should help the small people. Requiring big banks to help the small people is part of what led to the last financial crisis. Government forced banks to make sub-prime loans because "everyone should own a home" regardless of if you deserve or earned the right to own a home. Did greedy people get in on the deal and make a lot of money, yes absolutely. But if government had not gotten involved in the first place the housing bubble would not have happened or if it did, would not have been as severe.
Banks gage individual financial risk when calculating how much to charge someone as interest on a loan. If you are a poor risk you are charged more or not offered a loan at all. The banks are not in the business of charity (lets ignore the bank bailouts for now - should NOT have happened) but are there to make money for their stock holders. To make money they make loans so it is in there best interest to make as many loans as possible at competitive but profitable rates. If they won't give someone a loan, the risk must be too grate.
Someone that can't get a bank loan, can't build better credit and has no access to funds. Alternate lending businesses fill that void. Pawn shops, payday lenders, etc. If I have nothing to pawn, a payday lender is my only other option. Depending on my circumstances, this could be part of a larger debt spiral but it could also be just the bridge loan I need to help me get back on a good credit standing or to cover an emergency expense that has come up.
Limiting this business by artificially capping rates or by putting other restrictions in place simply limits options for those in need. There should actually be less regulations in this space. Less regulations would mean that it cost me less to run my business and would lead to a more competitive market allowing some to have access to better rates. As it is, government is helping to drive up the cost of business, driving up rates and eliminating options for people in need - all under the "but we need to do something" umbrella.
There should be some regulations for sure. Clear terms that spell out the loan features: interest rate, length, amount borrowed, amount actually paid back, etc. but nothing that restricts access or confines the implementation of services. The market will then work it out and consumers will get the best options.