It is safe to borrow from payday loans, according to the US Consumer Financial Protection Bureau.
The bureau has released guidelines for lenders, including those that provide services such as payday loans.
The bureau said it has “serious concerns” about lenders that do not have enough customer-service expertise to monitor borrowers.
“Many payday lenders and other debt collectors will offer their borrowers a low-interest, low-income credit card or a prepaid debit card without being trained to provide accurate, reliable information about their debts,” the bureau said in a statement.
“Many payday loans also do not comply with federal consumer protections such as borrower education, reporting requirements and anti-fraud rules.
Consumers who rely on these products should always be aware that they can be fraudulent, and should not assume they will always be in compliance.”
Read more:Payday loans in the US are at their highest levels in 25 yearsThe bureau said the payday loan industry has increased in size since 2007, with more than 6.6 million people accessing payday loans in 2015.
Payday lenders charge borrowers an interest rate of 1.5% to 2.75%, which are the highest rates on the market.
Paycheck lenders charge 0.25% to 0.5%, with an average monthly rate of $2.24.
A payday loan is a loan that requires the borrower to make payments for the rest of their life.
It is typically used by people in low- to moderate-income brackets.
Pay day loans are often available through online or mobile applications.
The consumer bureau said payday loans are “a risk” and should be used only by people who can afford it.
“People should be careful about using payday loans if they are not willing to pay their own way, are unable to pay, or have difficulty finding work that can provide them with a monthly payment,” the agency said.
“A high number of people have been charged and charged-up for payday loans without paying the fees and interest they were originally promised.”
“It is important to remember that all people should be able to access payday loans as long as they can afford them.”
It said people should contact their credit card company if they want to take out a loan from a payday lender.