People looking for a short-term loan might be tempted by the ads for direct payday lenders. However, before you take out a loan from one of these companies, it’s important to understand the risks involved. Unlike traditional banks or credit unions, which must follow strict regulations, direct payday lenders are not subject to any federal consumer protection laws. This means that they can charge high interest rates and fees, and make it difficult to repay the loan. So before you borrow money from a direct payday lender, make sure you understand the terms and conditions of the loan agreement. Otherwise, you could end up in a financial mess.