The unfortunate result of credit card "reforms"

CNBC has produced an interesting spot on the rise of "Payday lending".

There is no doubt that this trend was in part caused by the weak economy and the "credit crunch", but another factor that should not be overlooked is the credit card "reforms" recently passed by Congress.

Price controls inevitably lead to shortages. There is really no way around that fact. In this case, when you cap fees and rates on credit cards, it sounds like a good idea, but consumers who really need credit (to fix a car or keep the heat on or avoid bouncing checks) go elsewhere, and often end up paying much higher fees and rates, whether it comes from payday lending, pawn shops, or even loan sharks.