In a step that illustrates a growing fight against predatory practices by payday lenders, officials in the city of Irving are researching whether state law would allow the city to cap interest rates charged by such lenders.

The move by Irving is also a sign of the growing frustration local leaders have with state lawmakers, who they say have allowed the industry to operate without oversight, The Dallas Morning News reported Sunday.

Other North Texas cities, including Mesquite, Richardson and Sachse, have started to use zoning laws to limit where and how many payday lending outlets can operate. Irving officials began to do the same last month.

"These folks are using a loophole in the state laws in regards to what they're charging," Sachse City Council member Bill Adams told the newspaper. "They're basically, in my opinion, legal loan sharks."

In Irving, there are more than three times the number of consumer lending outlets per capita than the state average. Meanwhile, the city's number of traditional banks per capita is slightly below the state average.

Irving officials say they don't want to run the lenders out of town, but they are considering the possibility of capping what officials call exorbitant rates. Irving staff members say they will have a viable proposal later this month, and are hoping other cities may follow their lead.

"I appreciate the fact that the availability exists," said Irving Mayor Herbert Gears. "I'm somewhat disappointed that the cost to the customer has become so extreme. These short-term, expensive loans don't really address the long-term solution to what's obviously a problem."

Payday lenders offer instant cash on short-term loans to people who often have troubled credit histories or are behind on their bills. But the interest rates are often extreme. When annualized, the cost for the loans can exceed 900 percent of the initial amount borrowed.

Industry officials say their fees and interest rates are based on short-term loans that typically last 14 days, making an unfair comparison to the annual interest rates consumers pay on mortgage and car loans. In addition, they say, the loans can be cheaper than the cost of a bounced check, the average late charge or reconnection fee.

Rob Norcross, a spokesman for industry group Consumer Service Alliance of Texas, said payday lenders are providing a much-needed service to a sector of society who can't find help elsewhere.

The state Legislature could consider at least seven bills aimed at regulating or placing an interest rate cap on the industry. However, bill sponsors say passage is growing unlikely. Related bills introduced during the last session fell to the efforts of lobbyists hired by payday lending companies,

"I can't believe our state leaders will fiddle faddle over some of the things we're dealing with," said Adams, the Sachse council member. He said he's frustrated the Legislature hasn't accomplished any sort of regulation.

But he's not convinced Irving will have much luck regulating the businesses by going it alone. "I don't believe cities have it within their power to set an interest rate," he said.