Not every state is giving payday lenders a hard time. Kentucky granted a moratorium to payday lenders on house bill 444.
Every state has its own unique way of dealing with issues. The legislators in Kentucky probably feel that people choose to use the product. They do not need eliminate it.
The more I think about it, it makes more sense. If you don’t like the product, don’t use it and tell your friends not to use it. Stop the economic morality card.