It isn’t that Tamara Dietrich complains about payday lenders. Lots of uneducated or ideological journalists attack the industry with unsupported accusations or misrepresentations. However, her article in the Daily Press shows a staggering level of delusion and, frankly, outright stupidity that she deserves to be hung out to dry.

The story she blathers on about is that Riverside Health System’s President decided to collateralize low-interest loans from his company’s credit unions to its members, with the intent to encourage them to stop using payday loans.

Dietrich is gushing about how wonderful this plan is. And she goes on and on about how naughty payday lenders are, and how Virginia should have banned them.

Well, it is a wonderful plan. Of course, what Dietrich fails to mention is that the only reason the credit union is making these loans is because they have no risk! Riverside’s President is backing all of the loans with his personal wealth.

And if Dietrich understood anything at all about how markets work, she’d know that banning payday loans only make things worse for consumers. They are forced to other, more expensive options. Riverside employees just happen to be lucky enough to have a boss who cares and is doing something.

But Dietrich, who I’m adding to the Payday Loan Opponent Dunk Tank, doesn’t stop there. See, she doesn’t let the facts get in the way of her having made up her mind. She accuses payday lenders of “shrugging off the law”, and accuses them of evading restrictions made on the payday loan statutes to continue making loans under other statutes.

Ms. Dietrich, could you please stop being an idiot? I mean, really. Nobody is evading anything. Payday lenders are operating strictly under the laws available to them in the state of Virginia. People use these loans for a reason — they help. People return to them for a reason — they help. For the millionth time, consumers are smart. They know what they are doing and are capable of making the choices that are best for them.

They don’t need your help to “protect” them. Unless, of course, since you are so very fond of Riverside’s plan, how about if you put up your own personal wealth to further collateralize these loans over at Riverside? Why not? After all, it’s such a great plan with no risk, right? You are so quick to want to put payday lenders out of business, and cost Virginia thousands of jobs while restricting consumer credit, why don’t you do something other than blather on about things you clearly know nothing about.

Mr. Fulmer is quite right. The payday loan industry welcomes competition. He is secure in making that remark because he knows that if any other viable source of short-term credit could succeed in the marketplace, it would have popped up in the 20 years since payday loans came into being. If the best that the market can do is to have a private individual risk his own money to collateralize low-interest loans, then why haven’t we seen that all over the country? Why haven’t we seen this from George Soros?

And why, Ms. Dietrich, why haven’t we seen it from you?

Or should we just assume you are another uneducated, ideological hypocrite who has no clue what she is talking about?

Be Sociable, Share!