It doesn’t turn them into smart people. It simply states that the lender has a responsibility to ensure that the people they lend to have the means to pay back the money they lend out. So there’s probably plenty of loopholes for payday lenders to continue their legalized usury even if this legislation passes.
The real solution is better bankruptcy law that allows people to escape perpetual debt. You can bet that lenders would take who they lend to more seriously if they could instantly lose money on it. You wouldn’t need a special law to force them; they’d do it on their own.
