SALEM, Ore. - Since June 1, a total of 60 Oregon payday loan shops have shut down as a result of new state regulations and now, to try and turn the market back in their favor, the payday loan industry is advertising.
For years, the payday loan industry has kept a low public profile - quietly taking blows from consumer advocates and politicians critical of its high interest loans.
Now, a national association of payday lenders is playing offense with a major nationwide ad campaign telling borrowers to use their loans responsibly.
"These changes are part of the ongoing effort we have as an association to respond to concerns by policy makers and to protect the financial well being of our customers at the end of the day," said Lyndsey Medsker with Community Financial Services Association of Washington, D.C.
The man in charge of regulating Oregon's payday lenders, David Tatman with the Department of Consumer and Business Services, said it is safe to say that the payday loan industry is getting nervous and may be trying to boost its image.
"I think what they're trying to do is make sure what happened in Oregon, the need to do that in other states is precluded by this campaign," he said.
Translation - keep other states from capping payday loan interest rates, the way Oregon has, and let Oregon's policy makers know that their industry is being responsible.
KATU News asked people on the street to read the campaign's print ads and they said the campaign is clearly not directed at payday loan borrowers.
"First of all, they're not going to read this," said Mike McNeill.
The ads are lengthy and detailed, not for a consumer on the run.
"Maybe for Congress," said Tina Vanoosten. "Maybe for the politicians who are trying to fight it, but not for the people who are getting the loans, no."
Congress is also looking at payday loan caps and some say that is one of the reasons the industry has fired off this ad campaign.
The industry denies that, saying they are simply looking out for consumers.
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