Short term gains or long term goal?

Lets compare industries here and possibly take note of what the future may hold... Payday companies have been providing financial assistance to the public and when that first started a consumer was only thought to handle one payday advance at a time due to the rate and the state that the consumer was in to have to search out such alternative funding. Now you have a consumer taking out 4 to 5 payday advances at one time. Should the consumer know that they can't handle that ... yes they should but they do anyways and over the past couple of years have been crying grievances for being taken advantage of and not understanding what they were getting into.

Now is the Government telling the consumers you should know better and read what you enter to.. No they are going aggressively after this industry and shutting companies down... as well as attacking industries that cater to Payday lenders.

So the question is at what point does grass hopping/ stacking propel this industry into that type of stigma that the government sees us a glorified payday lenders to small business owners. I understand Isaac's point that the longer term advances help promote a merchant to take on additional responsibility in light of having extra capital now but there are few merchants who stop at that one stack and when a merchant is confronted about the stack...they always state "i didn't know i couldn't do that" or " i didn't know i couldn't afford that" or my favorite " I thought i could handle it. "

So is this short term gain by the up and coming want to be funders in the space worth the long term government regulation or worse them shutting down your ability to even offer services or re coup on the receivables you have bought?