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@BeauNidle
The biggest issue with Payday loans is that you can roll them over, and you can get them from multiple lenders.
Most people that I know who have got into the shite have done so because of this.
Make a central database that all of the companies must consult, make it so that you can't take out a second loan until the first is paid off, and make it illegal to issue a loan to pay off a loan. After that market forces should start to pull down the interest rates as the companies compete for a smaller pot of misery (and stop relying on default charges etc for their profit margins).
The truth is that these guys WANT you to default, 'cos you are then in their pocket until you can claw out of the cycle. Not an ethical business model IMO.
Also, I am led to understand that simply taking one of these out dents your credit record even if paid off on time and in full.