Nonsense. Have you ever been to a pawn shop?
Within reason, if people know what the interest rate is, then it's up to them whether to agree to a contract or not. There is plenty of competition in the payday loan game, so people are free to shop around for an interest rate they can live with.
One of the reasons that interest rates are high on this type of loan is probably because of high default rates.
In any event, are you advocating a situation where such a loan would not be available at all, and be illegal?
I have a great idea: how about letting the consumer decide that, instead of you?
Did you miss the part about how this type of loan doesn't product a lot of consumer complaints? Maybe the reason for is that people know exactly what they're getting into when they acquire such a loan.
At least payday loans don't present the opportunity to commit theft of property via outright fraud, which seems to happen with mortgage lenders on a basis more frequent than many are willing to admit.
That is the type of criminal activity which merits aggressive legal action, rather than pre-emptively banning a loan with an interest rate which you think is "ridiculous".
I am basing my views on my understanding of the Bible. There may be differences of opinion on how God’s laws can or should be applied in modern days, but be careful before ridiculing something you do not understand because you may end up calling God a liberal.
Here are a few relevant passages:
Exodus 22:25
If you lend money to any of My people who are poor among you, you shall not be like a moneylender to him; you shall not charge him interest.
Deuteronomy 23:19
You shall not charge interest to your brother—interest on money or food or anything that is lent out at interest.
Matthew 25:27
So you ought to have deposited my money with the bankers, and at my coming I would have received back my own with interest.
A healthy economy is not based on debt or the exploitation of people who are weak or vulnerable.
I personally do not believe lending at an interest rate that generates a profit to be immoral, but there is some point at which these lenders are exploiting people.
While this is simply my opinion, I am part of we the people who does have a voice, and the counterarguments are also just opinions. I think short term emergency type loans should have interest rates capped. To me somewhere between 30 and 50% APR including processing fees should be enough for lenders to make high risk loans or it is a business that should not exist.
This is probably something that should be set at the state or community level though. I do not trust the federal government with regulating almost anything.