Todd Zywicki, a professor of law at George Mason University's School of Law and a senior scholar at the GMU Mercatus Center, has written an extensive paper on the reasons why the payday loan industry must be protected from potential Congressional restrictions.

Zywicki says, "Economic theory and empirical evidence strongly suggest that these paternalistic regulations would make consumers worse off, stifle competition, and do little to protect consumers from concerns of overindebtedness and high-cost lending. This paper will show how these unintended consequences may occur as a result of heavy restrictions on payday lenders."

The paper was written in July, 2009. Check out the link below to read the 32-page report.

http://mercatus.org/sites/default/files/publication/WP0928_Payday%20Lending.pdf