Payday Loan Shark Industry Running Phony Public Service Ads

A new advertising campaign by a business association of payday loan shark companies is attempting to avoid government regulation of their industry by urging consumers to only use their services in an emergency situation. Yet the advertising from this industry continues to show persons reoutinely seeking cash advances, payday loans, and other ultra high interest services simply as vacation or fun cash to spend.

This is typical of any business that may face government regulation, to spend money on phony public service advertising and attempt to appear responsible. And this is also always followed by a huge lobby effort in state legislatures that the average citizen knows little about to quash any new regulation of their industry.

In the Senate Banking Committtee, Chairman Christopher Dodd appears ready to clamp down on a number of consumer financial ripoffs in the subprime interest mortgage industry, excessive credit card fees and other things. The payday loan industry has long operated in a legal grey area and avoided the same interest and accountability standards as banks or savings and loans. The payday loan industry probably fears that they may be brought under similiar standards as other financial services and their high priced interest rate consumer ripoffs may be coming to an end soon.