Conservative Viewpoints

"Government is not the solution…it is the problem" -Ronald Reagan



  • ReoAd

    mainstreet_ad_pdf.jpg

    C&LPhoto

Payday industry has a Dick in bed with them

Posted by Stephen on February 25, 2008

Dick Saslaw, Democrat and Pro Payday Loan activist, is abusing his power in the Virginia State Senate to promote usury loans and the fleecing of Virginians.

Dick’s ignorance on the issue of payday lending is preceded only by his arrogance.

Dick attempts to ignore the fact that the average Virginian who uses the loans took out 8.3 loans per payday lending company in 2006, a number that has steadily been rising since the industry was legalized in 2002. According to the industry, the average person uses 1.7 companies, so the average Virginia customer takes out about 14 loans a year.

The only response Dick can muster as he counts the nearly $50 Thousand Dollars he receives from the predatory industry is to say, “We don’t have a right to tell these people how many loans they can get.”

What other answer can he provide? He was bought and paid for by the industry long ago.

His district has one payday lender in it while some have dozens. His limp wristed accusation that “Nobody who is in opposition to payday loans has ever taken one,” is a preposterous statement and people who live in the real world hope the comment comes from his profound lack of education on the reality of the effects predators like payday lenders has on the day to day lives of ordinary Virginians.

After all, he doesn’t want to limit how many loans a person can take for fear that it may limit how many campaign contributions he receives. One has to wonder if he works by commission for the industry.

The existence of payday lending depends on one simple ingredient; the repeat customer.

While certain worldly types in three piece suits in Richmond speak with a condescending tone sometimes filled with contempt about those that would venture into a payday lender they fail to even want to answer the question, “how do they create repeat business?”

The only way the devious practice of payday lending finds success is to create a scenario in which the borrower cannot escape. They must trap you in a cycle of lending to make a profit. If that were not the case, the industry would not object to the House cap of five loans per year.

The industry suggests that the average borrower in Virginia uses the loans properly and therefore does not take a large number of loans. Again, if that were the truth than the industry would not resist the House restrictions capping the number of loans a person can take in a given year in succession.

The industry, with their top crony Dick by their side, maintains that borrowers use these loans for emergencies. Yet, Republican Glen Oder from Newport News says he didn’t understand “why anyone would need more than five loans if they were used only for emergencies.”

The industry lied to convince law makers in 2002 to allow their disgraceful practices to corrupt the free market in Virginia, and now they will stop at nothing to keep their greed driven practices in place.

It is a sad day in Virginia when we must admit that our leaders are weaker than those in New Hampshire and North Carolina, more short sided than those in Georgia and Arizona, and bought off by the industry more effectively than dozens of other states that have stood up to the wolves in sheep’s clothing known as payday lenders.

Well Dick, you can dress your pig up in your Sunday best, paint your favorite shade of lipstick on her, but it’s still a pig you’re in bed with and it seems you will do everything in your power to allow their predatory practices to continue.

Shame on you Dick, shame on you.

Stephen Winslow is the executive editor of Conservative Viewpoints.

Advertisements

2 Responses to “Payday industry has a Dick in bed with them”

  1. malleatesoul said

    That is a very crude title for such a conservative venue, is it really appropriate? Both sides of the payday loan debate have made their case to key senators and reps, so Saslaw has a good deal of information on the issue. So your characterization of him as ignorant and arrogant is unfounded. In taking the stance he does, he’s keeping the government out of meddling with the market. Forcing a rate cap on any lending industry will ultimately kill it. This is a lawful, necessary industry, like it or not. No self respecting conservative can condone the government driving out any lawful business. Banning the industry is as prudent as banning Camaros because some people speed. Are you sure you’re not a closet liberal?

  2. Of course it is crude, and it is MEANT to be so.

    Payday lending is crude. Dick’s support for the exploitation and fleecing of Virginians is crude. The unethical practices of lenders like Check n’ Go is crude. The arguments presented by the industry supporters such as yourself are crude. As a result, yes, my title is crude, but it is no less accurate.

    I tried to give Dick the benefit of the doubt, but if as you say, Dick has plenty of information on the subject, than I would submit to you he is not ignorant, but incompetent and blinded by the 50K in funds he receives from the industry to do their bidding.

    The free market argument by industry supporters is a stale and tired argument that should be saved for those that enter this discussion passively. I, on the other hand, am a true supporter of the free market. The best friend the free market has in a properly managed government where predators that might attack or hurt the market are issued the proper sticks necessary to keep their actions in check.

    Milton Freidman-a man you should clearly study-stated emphatically that “any market forces that would remove, inhibit, or worse, prohibit the individual from participating in the free market should be eliminated.”

    If there is any entity in existence today that turns on the free market with a vengeance it is unquestionably payday lending. The predator practices of payday lending have one goal and that is to force a person to default on their loan. Until the borrower defaults the predator lender will continue to drain the ability for the borrower to entertain the free market. In the end, after defaulting, the borrower is, for all intent and purposes, eliminated from participating in the market.

    In the end, you are correct; no lawful business should be eliminated. However, those businesses that decrease the right of other businesses to pursue the riches of market success should be removed or provide the proper level of stick to bring said business into line.

    You said forcing a rate cap would kill a lender. You, like Dick, need to research your claims more thoroughly. There is a rate cap on the banking and credit industry today. It seems to me those industry’s are doing just fine.

    Furthermore, it is well documented that states like North Carolina have survived the painful process of ending payday lending. It is amazing that the sky didn’t fall when they placed a 36% cap on payday loans.

    In fact, those of us that truly supports the free market, as opposed to those that support it when it is convenient to their argument, realize that the market itself will respond and provide solutions to problems that corrupt and dysfunctional business present. For example, credit unions, high interest lenders like Beneficial, and even banks are beginning to provide several types of loans for the very clientele that predator payday lenders exploit on a daily basis.

    I’m so glad you provided me with the industry’s best argument so that people might be able to appreciate the weak links to which industry supporters will go in an attempt to maintain a grip on the greed driven practices of exploitation the predator payday lending industry covets.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: