Sometimes it's enough to let the buyer beware, but in the case of the lightly regulated "payday lending" industry, government has a clear-cut protective role to play.

Nationally, payday lenders (or "cash advance" businesses) have drawn calls for better regulation. Essentially, the companies cash a postdated check for people who need a small loan before their accounts are replenished on payday. Often, the loans will be extended for additional fees, so that many clients find themselves owing much more than the original principal of the loan. And often, these centers are placed in low-income areas where families who live paycheck-to-paycheck find themselves in a deeper hole of debt when they use these services.

In October, President Bush signed a bill that bars these businesses from charging active-duty military fees that would exceed an effective annual percentage rate of 36 percent. The Department of Defense pressed the issue because many of these businesses find locations in military communities and market the loans to the lower-paid personnel. According to the reasoning of defense officials, carrying high debt creates a security vulnerability in the ranks.

Ultimately, a law that creates a special lending category for the military might not withstand a legal challenge. But it at least has sent an important message to these businesses, a statement that government is willing to intervene on behalf of the borrower.

Hawai'i should be part of this pro-consumer trend. A year ago, the state auditor made recommendations for modest changes to the current state law — some of which industry leaders are willing to support, especially when they see the lawmaking trends at the national level.

Among the proposals in Marion Higa's report is a possible cap on fees, although no specific limit is suggested. That's something to consider, although the industry says anything as low as 36 percent would drive them out of business.

Locally, consumer-protection advocates believe a promising strategy would be to limit the amounts of the loan according to the borrower's income, and impose requirements that the lenders help them plan repayment, rather than rope them into further debt.

It's disgraceful that Hawai'i is one of the few states that doesn't even require the businesses to register as loan services. Even if the public accepts that the industry can police itself to some extent, that's an impossible task if nobody, from state official to loan executive, knows precisely who's in the game.