Nacha recently warned that illegal use of the system by payday loan lenders would stop.  Nacha is the manager of the Automated Clearing House network, which is the body which controls the electronic transfers of money and data online.

The problem, according to the Online Lenders Alliance (OLA), a trade group representing companies in the online lending arena, is that Nacha is not just penalizing illegal users, but harming legal ones as well.  That's why OLA is asking for clarification on Nacha's actions. 
OLA President and CEO, Lisa McGreevy, had this to say,

“We understand that there may be bad actors on the Internet, but OLA members are not among them,” McGreevy said in her Aug. 15 letter. Loans executed by lenders in her group are “freely sought and entered into by consumers, she said”

There has been much talk about the high interest rates charged by payday lenders, but what has been missed is why the rates are so high.  First, these are short term loans.  Applying an annual percentage rate doesn't make sense.  The interest charged should be looked at as a fee. 

Second, many people who apply for payday loans have cash flow issues which prevents them from meeting their obligation and paying the loan back on time.  This costs the lender more money.  They have to charge more, because the loans cost more.

The pressure is on and in the meantime, consumers who need a short term loan may find that their solution is not as convenient, private or legal as the online payday loan system.

Later this same week, Nacha issued a press release clarifying that legitimate payday loan lenders could continue to use Nacha.  They reiterated that they are only trying to week out illegal lenders, which I think everyone, other than the illegal lenders, is in favor of.