Gary Gardner, a lobbyist who advises one of the state's leading payday lenders, has testified on behalf of Washington's largest credit union against bills that would do the most to rein in the industry.

One of the industry's critics, Rep. Shay Schual-Berke, D-Normandy Park, is dubious about Gardner's dual role.

Schual-Berke noted that it's not unheard of for the same lobbyist to have clients that might have conflicting interests. But she added:

"I think it does raise eyebrows that you have the same individual representing a payday lender and credit unions who traditionally warned their members away from such products."

Gardner is a lobbyist for both Renton-based Moneytree and Boeing Employees Credit Union (BECU), with more than 390,000 members. BECU spokesman Todd Pietzsch deferred to Gardner regarding BECU's position on the bills pending in Olympia this session.

Pietzsch said BECU's interest in the payday legislation stems from its plan to follow the lead of a handful of other credit unions, including Washington State Employees Credit Union, that have begun to offer short-term loans on better terms than those offered by payday lenders.

He said BECU plans on rolling out its own product in the next six months and that the cost would be "below that of payday loans."

Meanwhile, only bills favored by the industry appear to be advancing in Olympia. That means the prospect is dim for measures that would have lowered interest rates and loan amounts, and created a database to permit lenders and the state to know when borrowers who already have outstanding payday loans seek new ones.

Asked why he was opposing such bills on behalf of BECU and two other credit-union clients, Gardner initially responded by saying that if fees were reduced the industry could crash and "the whole thing collapses." Gardner couldn't say what the payday industry's profit margins are or whether it could afford to charge less and still make money.

Gardner said that keeping rates and terms where they are would make the payday lenders appear selfish in comparison to credit unions. And that could attract customers to credit unions, he said. "Competition helps everybody," Gardner said.

Peter Lewis: 206-464-2217 or plewis@seattletimes.com