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No new polls on the Democratic Party gubernatorial race, but I’m guessing Terry McAuliffe is still comfortably ahead of fellow Dems Creigh Deeds and Brian Moran, judging by the attack ads being thown at McAuliffe by the Deeds and Moran campaigns.

“Terry McAuliffe may have a lot of big money for his campaign, but don’t let that hide the truth. The truth is, Terry McAuliffe led the campaign that ran the ‘3 a.m.’ attack ad against Barack Obama,” an announcer on a Moran radio ad that debuted Sunday in Richmond and Hampton Roads.

The McAuliffe camp has responded twice today – with an e-mail from campaign manager Mike Henry and a statement from former Senate majority leader and national Obama campaign co-chair Tom Daschle.

I’ll reproduce the e-mails containing the Moran attack and the McAuliffe responses below.

Also below I’ll share in their entirety the releases on the tete-a-tete between the Deeds and McAuliffe campaigns, which is, refreshingly, on an actual substantive policy issue, payday lending. I’m only partially refreshed on the nature of the Deeds attack, though. It departed from the realm of the substantive in claiming that McAuliffe’s call for the repeal of the Payday Loan Act of 2002 was a criticism of former governor Mark Warner and sitting Gov. Tim Kaine.


Moran-McAuliffe on Obama

Moran campaign press release

On Sunday, Brian Moran’s campaign for governor released a new radio ad that sets the record straight on Terry McAuliffe’s long history of working against President Barack Obama and the new politics Obama fought for. The ad, titled “Turn the Page,” began running Sunday on urban radio stations in Richmond and Hampton Roads. It is the campaign’s third radio ad.

McAuliffe has run ads which say, according to the Washington Post, “he takes credit for helping to elect President Obama last year.” (McAuliffe Unveils new Ad Mentioning Obama, 3/18/ 2009) Moran’s previous radio ads highlighted the support of former Hampton Delegate Dr. Mary Christian and his celebration of President Barack Obama’s first 100 days.

“Terry McAuliffe is spending millions of dollars to tell everything except the truth. Now is the time to set the record straight,” Moran Campaign Manager Andrew Roos said. “Virginia Democrats need a governor who will partner with President Obama to turn the page on the failed politics of the past. Brian Moran has always served the public and made them his priority, not personal gain.”



Run time: 60 seconds

Audio available: http://brianmoran.com/turn-the-page

“Terry McAuliffe may have a lot of big money for his campaign, but don’t let that hide the truth. The truth is, Terry McAuliffe led the campaign that ran the ‘3 a.m.’ attack ad against Barack Obama, McAuliffe worked to put up the ads that questioned Obama’s ability to be President. The fact is, if Terry McAuliffe had his way, Barack Obama wouldn’t be our President today. McAuliffe even went on national TV and joked Barack Obama could, quote, ‘kiss my ass.’ The New York Times put it best, saying ‘[Barack] Obama ran against exactly the kind of big-money 1990s politics that McAuliffe has come to represent.’ We need to stand against McAuliffe’s big-money politics today. Brian Moran has been fighting for our community for decades. Brian Moran will take on big- money Wall Street politics and fight for our streets as Governor.”

In the Hampton Roads version: “Locally, Chair of the Legislative Black Caucus Kelly Alexander urges you to vote for Brian Moran for Governor. We can count on Brian Moran.”

In the Richmond version: “Locally, Richmond Mayor Dwight Jones urges you to vote for Brian Moran for Governor. We can count on Brian Moran.



– “…but don’t let that hide the truth.” “McAuliffe was a national chairman of Hillary Rodham Clinton’s campaign during last year’s Democratic primary. In that role, he was a frequent critic of Obama and his campaign. But after he started eyeing a bid for governor, McAuliffe campaigned for Obama around the state.” The Washington Post, McAuliffe Unveils new Ad Mentioning Obama, 3/18/ 2009 http://voices.washingtonpost.com/virginiapolitics/2009/03/mcauliffe_unveils_new_ad_menti.html

– “…ran the ‘3 a.m.’ attack ad against Barack Obama.” Hillary Clinton for President, “3 a.m.” TV ad, http://www.youtube.com/watch?v=xcR6enqJZJ8

– “…if Terry McAuliffe had his way, Barack Obama wouldn’t be our President today.” McAuliffe says that questions about Senator Obama’s relationship with Reverend Wright are fair game: Fox News, April 3, 2008.

Transcript: http://www.realclearpolitics.com/articles/2008/04/terry_mcauliffe_on_hannity_col.html

Video: http://www.foxnews.com/video2/video08.html?maven_referralObject=f705bb0c-10e1-4758-9ede-ff8f5b1ebfdf&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/story/0,2933,352454,00.html

– “…and joked Barack Obama could, quote, ‘kiss my ass.’” The Daily Show with John Stewart. June 3, 2008. Beginning at minute 4:30. http://www.thedailyshow.com/video/index.jhtml?videoId=171030&title=terry-mcauliffe

– “’…exactly the kind of big-money 1990s politics that McAuliffe has come to represent.’” The New York Times Magazine, Governor Clintonism, May 8, 2009. http://www.nytimes.com/2009/05/10/magazine/10Mcauliffe-t.html

– “We need to stand against McAuliffe’s big-money politics today.”

The Washington Post, McAuliffe Hits up Park Avenue for Cash. January 22, 2009 http://voices.washingtonpost.com/virginiapolitics/2009/01/mcauliffe_hits_up_park_avenue.html

McAuliffe was widely criticized for a fundraiser hosted by anti-Obama GOP operative Ed Rogers (http://politicalticker.blogs.cnn.com/2009/03/25/mcauliffe-takes-heat-for-fundraiser-at-lobbying-firm/  and http://www.youtube.com/watch?v=3Bc4Z8U4Erg.


McAuliffe release: Daschle speaks on behalf of McAuliffe

Today, former Senate Majority Leader Tom Daschle, who served as a National Campaign Co-Chair for President Barack Obama, issued the following statement in support of gubernatorial candidate Terry McAuliffe:

“As the national co-chair of Barack Obama’s presidential campaign and one of his earliest supporters, I was impressed by the time and energy Terry put into traveling across Virginia and the country on Barack Obama’s behalf during the general election.

“From the day Hillary Clinton ended her historic bid for president, Terry worked tirelessly to unify our party around Barack Obama and get him elected President. His energy and enthusiasm were tremendous assets on the campaign trail and we were grateful to have him on our side.

“Terry has decades of experience creating jobs and turning around struggling businesses, including bringing the Democratic National Committee out of debt for the first time in modern history. I believe this experience makes him uniquely qualified to be the next governor of Virginia and I support his candidacy.”


E-mail from McAuliffe campaign manager Mike Henry

Brian Moran’s campaign has reached a new low. Last night they unveiled a false attack ad, set to air on African-American radio stations, that’s deliberately designed to deceive voters into believing Terry opposed Barack Obama’s candidacy last November.

Of course, nothing could be further from the truth. Immediately after the primary, Terry led the charge for Democrats to unite behind Barack Obama. The Obama campaign asked Terry to campaign on its behalf and Terry held dozens and dozens of events in Virginia and across the country – making the case that President Obama was the right person to turn the page on eight devastating years of Republican rule and restore the promise of America. The Obama campaign trumpeted Terry’s support — releasing professional web videos of Terry’s campaign stops in Virginia and other swing states.

We put together our own video that chronicles just a small portion of the work that Terry did for the Obama campaign, and we’re counting on you to set the record straight.

Click Here to Watch Terry Campaign for Barack Obama – Then Help Us Fight Back.

At a time when so many families are facing real financial hardship and are just struggling to pay the bills, you’d hope that our gubernatorial candidates would focus on how to grow the economy and move Virginia forward. But not Brian Moran. He’s rehashing old campaign battles and dividing Democrats – all in a shameless attempt to score a few cheap political points. These are exactly the kind of slash-and-burn tactics voters rejected when we elected Barack Obama.

Virginia Democrats deserve better. That’s why Terry’s focusing on solutions to the economic crisis – so that we can create the jobs of the future and help Virginia families get through these tough times. The Richmond Times-Dispatch wrote that, “McAuliffe invites other contenders to focus on issues of genuine substance rather than petty personal attacks and cheap, zinger-of-the-day point-scoring…. [H]is substantive pitches have raised expectations and pointed the way toward a different, more high-toned campaign.”

But with just 22 days to go until Election Day, we need to aggressively respond to the false attacks our opponents are hurling at Terry. And you can help us fight back by making a contribution to Terry’s campaign.

Right now, we’re under full-scale assault. Both of our opponents are running false attack ads against Terry, and we need the resources to run ads setting the record straight while continuing to communicate Terry’s positive vision for Virginia. We’re counting on your help to make that happen.

Click Here to Make a Contribution to Help Air Response Ads.

This is your campaign, and there’s no way we’d be in the position we’re in without everything that you’ve done. I can’t thank you enough. There are just 22 days left until the election on June 9th. So please keep up the hard work all the way to the end.

– Mike Henry, Campaign Manager


Sunday statement from McAuliffe spokeswoman Liz Smith

“Negative attacks like this one are nothing new from Brian Moran, who continues to run false and misleading ads. The fact is that Terry fought tirelessly after the presidential primaries to get Barack Obama elected.

“Terry is proud to have held dozens and dozens of events across Virginia and the country on President Obama’s behalf. And he’s proud to have worked with leaders like President Obama and Governor Kaine to establish unity in the Democratic Party after the presidential primary. It’s sad that Brian Moran is trying to divide Democrats again, especially at a time when we all need to come together to help President Obama get the economy back on track.

“With a strong record of creating thousands of jobs and turning around struggling businesses, Terry doesn’t need to rely on negative and misleading attacks. It’s unfortunate that Brian Moran does.”


Fact Check from McAuliffe campaign

FALSE ATTACK: Moran campaign would like you to believe Terry McAuliffe doesn’t want Barack Obama to be President.

FACT: Once the Primary ended, Terry McAuliffe enthusiastically supported Barack Obama, stumping for him throughout Virginia and the country.

– McAuliffe Was Front And Center Encouraging Clinton Supporters To Unite Behind Obama As Soon As The Primary Ended. In June 2008, McAuliffe was front and center encouraging Clinton supporters to unite behind Barack Obama at the ‘Unity Event’ shortly after the primary ended. ‘Terry McAuliffe, the campaign chairman for Mrs. Clinton, said it was time to get her contributors ‘fired up for the general election.’ As Mr. McAuliffe walked through the hotel’s stately lobby, he was greeted by several Clinton supporters who embraced him and spoke longingly about Mrs. Clinton’s candidacy. ‘This is unity; bringing together these folks is a good piece of that,’ Mr. McAuliffe said.” [New York Times, 6/27/08]

– McAuliffe ‘Now, We All Do Whatever We Can To Help Barack Obama To Become The Next President…’ TERRY MCAULIFFE, CLINTON CAMPAIGN CHAIRMAN: It was an exciting campaign and it was very close. But now, we all do whatever we can to help Barack Obama to become the next president because it’s about the issues. [Verdict with Dan Abrams, 6/6/08]

– McAuliffe: ‘I’m Going To Go Full-Time To Help His Campaign.’ MCAULIFFE: I have talked — I have talked to Senator Obama several times. And, now that we’re through this convention, I’m going to go full- time to help this campaign. [MSNBC SPECIAL, 8/26/08]

– McAuliffe Reiterated Importance Of Electing Obama During Convention. McAuliffe was asked on ‘American Morning’ about whether President Bill Clinton behind Obama. He said Clinton would use his convention speech to “Make the case that it’s an important year for a Democrat to win the White House, House, Senate, and we have to get behind Barack Obama.” [CNN, ‘American Morning, 8/27/08]

– McAuliffe Did A 30-Locality Tour Of Virginia To Promote Obama. McAuliffe did a 30-locality tour of Virginia to promote Obama. At one stop, McAuliffe spoke at a forum in Chesterfield County, where he was the Democratic counter to former Republican governor and U.S. senator George Allen. [Washington Post, 9/18/08; Richmond Times Dispatch, 9/25/08]

– Charlottesville, VA – McAuliffe spoke about health care ‘on behalf of Democratic presidential nominee Barack Obama.’ [Daily Progress, 9/28/08]

Video of Terry campaigning in Charlottesville for President Obama can be found here: http://www.youtube.com/watch?v=59SswR-As6I&feature=channel_page

– Danville, VA – McAuliffe was in Danville on behalf of Democratic presidential nominee Barack Obama. He focused most of his discussion on Obama’s plan, and noted stark contrasts to that of Republican contender John McCain. [Danville Register & Bee, 9/30/08]

– Roanoke, VA – McAuliffe stumped for Barack Obama in Roanoke… McAuliffe told a crowd of about 30 that Obama, the Democratic presidential candidate, would expand health insurance coverage to some of the 47 million Americans who are without it. Obama’s plan would reward doctors for keeping patients healthy rather than for recommending procedures, McAuliffe said. [Roanoke Times, 10/01/08]

– Norfolk, VA – McAuliffe spoke at Old Dominion University sponsored by Students for Obama. McAuliffe discussed presidential candidate Sen. Barack Obama’s policy proposals to improve our health care system. [US Fed News, Old Dominion University Press Release, 10/07/08]

– Terry Campaigned For Obama In Pennsylvania. The following video of Terry campaigning in Pennsylvania was produced by the Obama-Biden campaign: http://www.youtube.com/watch?v=7pif-zup_IM&NR=1


FACT: Even during the primary, Terry McAuliffe said he would support Barack Obama if he won the primary.

– McAuliffe: ‘I Think Senator Obama Has Run A Spectacular Campaign… We’ll Come Together After The Last Votes Are Done.’ McAuliffe: “This has been a great race. I mean, when you think about it, we’ve had 29 mil-lion votes cast and the difference is less than 1 percent. It’s been a great race. And I happen to be one of the Democrats who think this is good for the Democratic Party. … Huge crowds. I think this is great. And I think Senator Obama has run a spectacular campaign. This is the Democratic Party. We’ll come together after the last votes are done in June.” [CNN Larry King Live, 4/24/08]

– McAuliffe: ‘This Party Will Be United… We Will All Be Over At Obama’s Headquarters Helping Him.’ MCAULIFFE: “This party will be united. I have said this from day one. If we don’t win the nomination, Hillary Clinton, Bill Clinton, Chelsea Clinton, Terry McAuliffe, we will all be over at Barack Obama’s headquarters helping him. And Senator Obama would do the same for us. We are all going to be unified.” [Larry King Live, 5/9/08]

– McAuliffe: ‘If Barack Obama Happens To Be The Nominee, We Will Work – Everybody Will Work Very Hard.’ Mr. McAULIFFE: “No. Absolutely not. And if Barack Obama happens to be the nominee, we will work–everybody will work very hard. We will be a unified party. She has received–16.6 million people have voted for her. He’s received 16.7. This is a very close race. And we need to get everybody together at the end. And I disagree with a lot of these Democrats today that are saying we won’t be unified. We will be very unified. Bill Clinton didn’t win the nomination till June of 1992. We’ve got a long way to go. George Bush has been the greatest unifying force in the history of the Democratic Party. He has brought us all together. We will be together.” [Face The Nation, 5/11/08]

– McAuliffe: ‘We’ll All Be Over There to Help Senator Obama.’ In May 2008, McAuliffe told Tim Russert on ‘Meet the Press’ the he would support Obama and unify the party if he were the nominee.

MR. RUSSERT: Do you believe that if Senator Obama is the nominee that those white ethnic blue collar voters will come back and support him?

MR. McAULIFFE: Yes. Sure, with — if he’s the nominee, we’re not there yet, but if he happened to be the nominee, we’ll all be unified. And this will all come together. It will be exciting. Everybody will be out working, Hillary Clinton, Bill Clinton, everybody. We’ll all be over there to help Senator Obama. [Meet the Press, 5/11/08]


FALSE ATTACK: McAuliffe told Obama to kiss his ass.

FACT: The exchange Moran referenced occurred on the comedy program, The Daily Show. Terry made it clear he was joking.

– Terry McAuliffe Said He Was ‘Teasing’ In Exchange With Daily Show Host Jon Stewart. Terry McAuliffe went on The Daily Show with Jon Stewart the day of the final primaries in June 2008. Here is how the Washington Post reported it earlier this year: “McAuliffe later got into a comedic exchange with the host, Jon Stewart. Stewart, pretending to be Obama, asked McAuliffe a question that included an expletive to express his frustration with McAuliffe’s antics on the talk-show circuit. McAuliffe’s response: Obama could ‘kiss my [expletive].’ He quickly said he was ‘just teasing.'” [Washington Post, 3/22/09]

– Video of the Stewart-McAuliffe exchange can be found here http://www.tvsquad.com/2008/06/04/the-daily-show-june-3-2008-videos/


FALSE ATTACK: Terry is all about big money.

FACT: Terry has a strong record supporting the grassroots.

– McAuliffe Fought To Improve Democratic Party Structure And Grassroots Organization. According to the Washington Post, “He forced a controversial change in the primary campaign schedule and pressed state chairmen to give up exclusive control of their voter lists. He also invested millions in a new headquarters, and gambled that the party could mount a challenge to the GOP’s three decades of dominating fundraising. Every one of these high-risk tactics paid off. The schedule change gave Kerry time to raise more than $200 million; the DNC now has a voter list with information on more than 170 million people, which allows the party to develop its own direct-mail donor list. The new headquarters, in turn, is wired to run an operation increasingly dependent on the Internet and the facilities to produce all forms of telecommunications and traditional media.” [Washington Post, 7/26/04]

– McAuliffe Champion Of Direct Mail And Small Donors. “Now, as DNC chairman, McAuliffe has become the champion of the direct-mail and Internet small giver. While many assumed the 2002 McCain-Feingold law would gut the Democratic Party, the party has decisively broken all ‘hard money’ fundraising records (contributions of $25,000 or less), eliminated debt and built a donor base that could potentially power the party for years with McAuliffe at the helm.” [Washington Post, 7/26/04]

– McAuliffe Inaugural Fundraising Limited To $100 Contributions. In 1997, as Inauguration co-chair, McAuliffe limited inaugural contributions to $100, and many of the related events are charity fund-raisers. [Star Tribune, 1/20/97; San Francisco Chronicle, 1/17/97]


Deeds-McAuliffe on payday lending

The Deeds for Virginia campaign announced Deeds’ first radio spot of the primary campaign, which hits back on Terry McAuliffe’s deceptive radio ad on payday lending.

“Terry McAuliffe wants you to believe Warner, Kaine and Democrats in the legislature went easy on those payday lending companies,” said an announcer in the ad. “That’s the same attack Jim Gilmore tried against Mark Warner. It didn’t work then and won’t work now.”

The ad continues: “Well, it’s a good thing we have a friend like Creigh Deeds fighting for us. I know, it was State Senator Deeds who stood with Governor Kaine to pass new laws that crackdown on payday lenders. Deeds is the most qualified Democrat to carry on the Warner-Kaine agenda. That’s why leaders like Senators Yvonne Miller, Louise Lucas and Henry Marsh are supporting Creigh Deeds for Governor.”

The radio ad is currently running on urban radio stations in Hampton Roads and Richmond.

You can hear the ad here: http://www.deedsforvirginia.com/radioad



RADIO AD – “Disappointed”

Female: Disappointed.

Male announcer: Yep, disappointed that McAuliffe is attacking his opponents.

Female announcer: Even after he promised not to say anything negative?

Male announcer: And he’s even attacking Mark Warner and Tim Kaine record’s in a new radio ad.

Female announcer: Really?

Male announcer: Yep, McAuliffe wants you to believe Warner, Kaine and Democrats in the legislature went easy on those payday lending companies.

Female announcer: That’s the same attack Jim Gilmore tried against Mark Warner.

Male announcer: It didn’t work then and won’t work now.

Female announcer: Kinda strange for someone like Terry McAuliffe who made millions in the high interest credit card business himself to use this deceptive Republican attack.

Male announcer: Well, it’s a good thing we have a friend like Creigh Deeds fighting for us.

Female announcer: I know, it was State Senator Deeds who stood With Gov. Kaine to pass new laws that crackdown on payday lenders.

Male announcer: And Deeds is the most qualified Democrat to carry on the Warner-Kaine agenda.

Female announcer: That’s why leaders like Senators Yvonne Miller, Louise Lucas and Henry Marsh are supporting Creigh Deeds for Governor.


McAuliffe response

In response to the release of Creigh Deeds’s negative attack ad, McAuliffe campaign spokeswoman Elisabeth Smith released the following statement:

“It’s strange that Creigh Deeds is attacking Terry on this issue. The fact is that as members of the General Assembly all three of Terry’s opponents allowed predatory lending to explode in Virginia and took thousands of dollars in campaign contributions from the industry.

“It’s an honest difference between the candidates. Terry wants to ban all predatory loans, and he’s the only candidate who has pledged not to accept money from predatory lenders. He has also proposed a plan to replace predatory loans with a responsible alternative.”


Fact Check On Creigh Deeds’ Negative Attack Ad

DEEDS CLAIM: Terry McAuliffe is attacking his opponents, Mark Warner and Tim Kaine.

FACT: McAuliffe is talking about issues, not attacking his opponents.

– McAuliffe Ad Talks About The Payday Lending Issue. In his radio ad, Terry McAuliffe talks about problems arising from predatory payday lending. He does not mention his opponents or Governors Mark Warner and Tim Kaine. Talking about issues is not a negative attack.


FACT: Mark Warner and Tim Kaine have stated their reservations with the 2002 payday lending law.

– Governor Warner’s Recommendation To Revisit Payday Lending Regulations Rejected By House Of Delegates. On April 17, 2002, the House of Delegates rejected Governor Warner’s recommendation to allow state regulators to consider how the payday lending bill was affecting Virginians and advise the General Assembly to revisit the payday lending issue in 2003. The House rejected the recommendation 24-76. [Daily Press, 4/2/02; HB 940 http://leg1.state.va.us/cgi-bin/legp504.exe?021+vot+HV1972+HB0940]

– Governor Kaine Said The 2002 Payday Lending Law ‘Was An Error.’ “‘I think we made a mistake in 2002 or 2003 when we lifted the interest-rate ban [of 36 percent] and created a system where payday lenders were allowed to come in and actually flourish – I think that was an error,’ Kaine said.” [Richmond Times Dispatch, 2/27/09]


FACT: Creigh Deeds has “attacked” Governors Warner and Kaine.

– Deeds Criticized Warner And Kaine On Higher Education Funding. At a campaign stop, Creigh Deeds criticized Governors Warner and Kaine on higher education funding. He said, “Lots of good things have happened while Governors Kaine and Warner have been in office. But there’s one thing that’s not been so good…The last 8 years, we have disinvested in higher education to the tune of over $3,000 per student. The result of that has been tuition in our four-year system has increased by 78 percent on average, and that was before last week a lot of schools announced increases…of 4 1/2 to 5 1/2 percent.” Video of Deeds’ remarks can be found here http://www.youtube.com/watch?v=Pb9hHInd2ak&eurl=http%3A%2F%2Fbluevablog.blogspot.com%2F2009%2F05%2Fdeeds-agrees-with-mcdonnell-criticizes.html&feature=player_embedded]


FACT: Creigh Deeds is attacking his opponents.

– Deeds On Moran: ‘The Only Thing Going From An F To An A To An F…Was Brian Moran’s Rating With The NRA.’ At the Virginia Tech blogger debate, Creigh Deeds attacked his opponent Brian Moran on his NRA rating. Deeds said, “Well its going to take more than 30 seconds to respond because the only thing going from an F to an A to an F, besides my high school calculus grade was Brian Moran’s rating with the NRA. And I don’t understand what set of principles guided him along that path.” [Virginia Tech Blogger Debate, 4/29/09]

– Deeds Criticized Moran For Taking Donations From ‘Tainted’ Defense Contractors. At a debate, Creigh Deeds criticized Brian Moran for taking campaign contributions from “tainted” defense contractors. The Washington Post reported: “Deeds said yesterday that he was referring primarily to donations the Moran brothers have accepted from the lobbying firm Paul Magliocchetti Associates…The firm, which closed earlier this year after the FBI raided its offices, is also the subject of a federal investigation into contributions from people listed in campaign finance reports with PMA affiliations but with no obvious connection to the firm.” [Washington Post, 4/21/09]


DEEDS CLAIM: Terry McAuliffe is making it seem like Democrats went easy on payday lenders.

FACT: Terry acknowledged that the General Assembly was finally working to address this issue. He also has proposed an outright ban on payday lending.

– McAuliffe Radio Ad: ‘The Legislature Is Finally Working Towards Fixing This Problem.’ McAuliffe’s radio ad on payday lending acknowledged that the General Assembly was working to address payday lending. The script states, “In these tough economic times, the legislature is finally working towards fixing this problem; but why has it taken so long to stop these lenders from preying on Virginia’s most vulnerable families?” The ad continues to say that McAuliffe proposed banning payday lending in Virginia. [McAuliffe radio ad, released 5/7/09]

– McAuliffe Proposed Ban On Payday Lending. “Terry McAuliffe is starting a pile-on by Democratic gubernatorial candidates of the high-interest instant-loan industry, proposing the state kick out payday lenders. ‘We need to shut them all down; they only shove people into worse economic conditions,’ McAuliffe said yesterday.” [Richmond Times Dispatch, 4/3/09 ]


FACT: Creigh Deeds voted to legitimize payday lending in Virginia.

– Creigh Deeds Voted For The 2002 Payday Lending Bill. On March 4, 2002, Creigh Deeds voted for the payday lending bill in the Senate. [HB 940, 3/4/02]

– 2002 Act Caused Industry to Explode and Left Thousands of Virginians ‘In a Cycle of Debt They Cannot Escape.’ According to the Washington Post, after the Payday Loan Act became law, “critics say the industry has exploded, leaving thousands of Virginians in a cycle of debt they cannot escape because of the high interest rates.” [Washington Post, 2/5/08]

– 2002 Law Allowed Payday Lenders To Enter The State With Annual Percentage Rates That Was As High As 391 Percent. “In 2002, the General Assembly permitted the industry to enter the state when it began allowing lenders to make loans at annual percentage rates reaching as high as 391 percent, or $15 for every $100 loaned. By 2006, about 434,000 people in Virginia had taken out loans worth $1.3 billion, according to the state Bureau of Financial Institutions.” [Washington Post, 4/21/08]


DEEDS CLAIM: Terry “made millions in the high interest credit card business himself.”

FACT: Terry worked in the affinity market business. One of his business ventures was working with the AFL CIO on its affinity credit card. This card, Union Privilege, provides benefits to working families.

– McAuliffe Helped With The AFL CIO Union Privilege Affinity Card. Terry McAuliffe worked in the affinity market business. One of the organizations he worked with was the AFL CIO. John Sweeney said AFL’s affinity card has benefited working families. In 1997, Sweeney said, “We negotiated a credit card deal that we thought was good for our members. Household competed with others for this program, and we negotiated the best possible deal for the members of the AFL-CIO.” [CNN, 9/23/97]

– AFL Union Privilege Provides Discounted Products To Working Families. According to its website, “With Union Plus benefits, your union membership “pays” at work and at home. By using the collective buying power of unions, we are able to offer a valuable, discounted products and services exclusively to working families.” [http://www.unionplus.org]

– Union Plus Offered Gold Service Which Provided Members Free Car Rental Insurance, Retail Purchase Protection And Other Benefits. “Household Bank (Nevada) and Union Privilege have launched a gold version of the Union Plus MasterCard issued by Household and promoted by Union Privilege, which negotiates discounts and special offers for AFL-CIO labor unions. The new card is being offered to one million of the three million holders of various Union Plus cards…The gold card offers a higher credit line than does the standard card, and throws in a laundry list of gold features like free car-rental insurance, roadside emergency auto service, a retail purchase-protection plan, and extended product warranties.” [Credit Card News, 9/15/97]


FACT: Creigh Deeds voted to deregulate the credit card industry.

– Deeds Voted To Deregulate The Way Banks And Retailers Calculated Credit Card Interest. He Said Credit Card Deregulation Was ‘One Of The Most Important Bills’ Passed In 1997 But Wished He Had More Time To Study And Think About It. “The legislature ended current restrictions on the way banks and retailers calculate interest on credit-card balances. The aim was to bring Virginia law in line with such ‘free market’ states as Georgia, Delaware and South Dakota, where many national credit card companies base their operations, said state Sen. Walter Stosch, R-Henrico County, the bill’s sponsor…The credit-card bill sailed through with little debate. ‘You know, that’s probably one of the most important bills we did this session,’ said R. Creigh Deeds, D-Bath, a member of the Corporations, Insurance and Banking Committee. ‘I guess it makes sense, with all the deregulation in other states,’ said Deeds, who voted for the bill even though he said he wished he’d had more time to study and think about it. ‘I just wish I felt a little more sure.'” [Richmond Times Dispatch, 2/24/97]


– Story by Chris Graham



Have a guest column, letter to the editor, story idea or a news tip? Email editor Chris Graham at [email protected]. Subscribe to AFP podcasts on Apple PodcastsSpotifyPandora and YouTube.

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