COSTELLO: It's a $46 billion industry that often targets desperate consumers -- payday lending. You've seen the commercials, a spokesmen like Montel Williams promising you fast cash to cover expenses. But those easy loans can often be hard to repay, and now a new report says the government wants to step in to stop payday lenders from taking advantage of consumers. CNN Money correspondent Cristina Alesci is following this story for us. Good morning.</s>CRISTINA ALESCI, CNN MONEY CORRESPONDNET: Good morning. Yes, "The New York Times" says at the core of the problem is the fact that payday lenders are getting around individual state regulations that are meant to protect oftentimes poor people from abusive practices. Carol, I don't know if you realize this but sometimes the fees and interest amount to more than the principle that these people are actually taking out. So now the federal regulators are coming in and saying we need to hold these lenders more accountable. They want to do things, for example, like force the lender to make sure the borrower can repay the loan within two weeks. Now, this is a very complicated issue because the industry will say, hey, we're helping poor people. We're the only source of financing. A bank isn't going to give them -- lend them the money. But there has to be a balance between providing a service for these people, who often on average make $22,000 a year, and abusive practices, right? These people are going to these payday lenders for a medium of ten times a year. This isn't emergency funding; this is paycheck to paycheck living that you have to tap on a continual basis and that's the problem.</s>COSTELLO: Cristina Alesci, many thanks to you. I appreciate it. The next hour of CNN NEWSROOM after a break.
Federal Government to Target Payday Lenders