Payday lenders are everywhere, and apparently doing a thriving business.

But the Federal Trade Commission, the Consumer Federation of America and the Consumers Union have voiced strong concerns about the payday loan industry, saying they tend to prey on lower-income and minority families as well as military personnel.

Educated consumers are not payday lenders' best customers, so here are five things payday lenders would rather you not know:

1. The annual percentage rate charged for the loan is huge.

A typical payday loan is $200 for a term of two weeks with a fee ranging from $15 to $30 per $100 borrowed. The person seeking the loan writes a $240 postdated check and receives $200 in cash. What many consumers do not know is that the $200 loan for two weeks plus fees is at an APR of between 390 and 780 percent. Payday lenders would argue that a one-time late fee on a credit card is just as high an APR; however, a $30 late fee on a $200 credit card balance is an APR of 178 percent and, although high, is a much lower rate than an average payday loan.

2. State usury laws and regulatory protections may not be able to help you if you get in trouble.

Many states have usury laws preventing a lending company from charging exorbitant interest rates. New York, for example has an interest cap of 25 percent for all loans made within the state. However, payday lenders are offering loans in New York and other states with usury caps and charging the same high fees by purchasing or leasing another bank's usury license from a state without usury laws or with a high usury cap. In addition, national banks charter many payday lenders.

The Consumer Federation of America has harsh words for partnering banks. "Banks continue to play a major role in enabling payday loan chains to evade state usury, small loan and payday loan laws. ... State-chartered, federally insured banks claim the right to export home state interest rates and to pre-empt some state consumer protections to be on an equal regulatory footing with federally chartered banks and thrifts."

3. Rolling over loans can cost you more than the amount of the loan in fees.

Studies show that 75 percent of payday loan borrowers rollover their loans at least once. Pay day lenders are banking that borrowers will not be able to pay their loans at the end of two weeks and will then be assessed another fee of $15 to $30 per $100 borrowed. A recent Georgetown University study reports that one-third of payday borrowers roll over their loans seven or more times, multiplying the already high APR for the original loan to more than 1,000 percent.

4. Collection techniques are among the most aggressive.

Payday lenders lose very little money and make huge profits. Consumer Reports says: "By requiring consumers to turn over a postdated check, consumers are often coerced or harassed by illegal threats or collection practices. For example, they will be threatened with jail for passing a bad check, even though the law specifically says they cannot be prosecuted if the check bounces." Consumer Reports even suggests that credit from finance companies such as Household may be better alternatives, with rates of merely 25 percent to 35 percent APR.

5. There are other alternatives available even if you don't think so.

Before there were payday lenders, people dealt with debt issues by negotiating repayment plans with creditors (or using a consumer credit counseling service to do so on their behalf); getting an advance from their employer; getting a small loan from a credit union; using checking overdraft protection as an emergency short-term loan; or going to a legitimate finance company.

Payday loans may not be as bad as prison, but at best you pay far too high a price for the loan and at worst create a financial nightmare.