Time was that payday lenders wanted service members' business so much that they "conveniently" located their establishments near military bases and facilities.

Now these same lenders, after years of profiting handsomely off struggling military families, are shunning service members now that Congress has instituted a 36 percent interest cap on loans to this market segment. Considering some payday lenders charge up to 900 percent interest, it's no small wonder that they have balked at the federal limit.

Some critics of payday lending say the refusal to lend money to service members and their families may be a blessing in disguise. They will be forced to find other options that will not saddle them with preposterous interest rates. Already, the largest credit union in Kansas has developed a means to provide small payday advance loans at reasonable interest rates — matching the 36 percent cap imposed by Congress on the payday lenders. Loans will be limited to $500 each.

However, the credit union will not make another salary advance loan until the previous loan has been retired. Credit union members will have 30 days to pay back the loans, and if they take out more than three of the salary advance loans, they will be required to attend credit counseling each time they apply. The credit union hopes financial education will help consumers alter their habits.

Meanwhile, many state and local governments across the country are contemplating other curbs on such businesses, such as limiting their numbers through planning and zoning regulations. Some states are considering interest caps far more significant than the federal limit, with some seeking limits of 24 to 25 percent.

It may be difficult to rein in payday lenders through zoning regulation or interest caps. There already is such a huge proliferation of payday lenders that it will be impossible to zone them out of existence, except in largely undeveloped areas. In Utah, for instance, payday lender shops outnumber all 7-Eleven convenience stores, McDonald's, Burger King and Subway stores combined. The genie's already out of the bottle.

Perhaps the best option is for the financial services industry to develop alternatives that enable them to make a sizable profit yet serve the needs of military families without subjecting them to payday lender interest rates that in Utah average 521 percent annually.