Mr. Obama is determined to lend himself as much power as he can

Obama’s end run

He bypasses Congress to go after payday lenders

Having the legislative branch enact laws, to be signed by the executive (as set out in the Constitution), has become a quaint concept under President Obama. From immigration to health care, laws are selectively enforced with exemptions and waivers generously granted to the favored not-so-few. Anyone falling into disfavor at the White House can suffer their business criminalized without discussion or debate. (If this way of governing is good enough for Chicago, it’s good enough for everybody else.)

Consider short-term lending, a $20 billion industry that offers credit to consumers not served by big banks and Wall Street firms. Payday lenders offer millions of Americans who might otherwise be tempted to turn to loan sharks access to small-dollar credit that can cover emergency needs, such as an unexpected car repair or hospital bill. For families getting by paycheck to paycheck — something increasingly common in this stagnant economy — it can be a lifesaver, though at a steep price.

The president doesn’t like payday lenders, and neither, particularly, do we. But rather than seek changes by legislation or an open rule-making process to propose reform, the White House simply cracked down on payday lending. The Federal Deposit Insurance Corporation, Department of Justice and Federal Trade Commission recently notified banks and payment processors to stop processing transactions for short-term online lenders through the payment process known as the Automated Clearing House, which handles most credit card transactions and direct debits. Being shut out of this network means a short-term lender can’t set up an automated payment for a loan when payday arrives.
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