May 3, 2016

Fact Checkers Skewer Patrick Murphy’s Payday Lender Lie

Patrick Murphy’s dishonest attempt to talk his way out of a deeply unpopular position propping up the payday lending industry continues to create headlines – and headaches for his campaign.

After coming under fire for pushing legislation favored by his payday lender donors, Patrick Murphy tried to avoid the wrath of Elizabeth Warren and liberal Democrats by bizarrely claiming he wanted to get rid of federal industry oversight because Florida’s law is better.

The problem? Murphy’s claim is blatantly untrue, and earned a “false” rating from PolitiFact:

Murphy said Florida’s regulations on the payday lending industry are “stronger than almost any other state.”

Consumer advocates, Pew researchers and the head of the Consumer Financial Protection Bureau have several criticisms of Florida’s law, including the high interest rate. Pew, an independent organization, says that Colorado has the best model law in the country. The Center for Responsible Lending points to 14 states — not including Florida — that cap interest rates at 36 percent as a better practice.

There are ways in which Florida’s payday law is better than some other states, but there is not evidence that it’s stronger than almost any other state.

We rate this claim False.  

Nice try. To be fair to Privileged Pat, he doesn’t know much about what it’s like to live paycheck to paycheck.