The San Antonio City Council has adopted an ordinance that limits payday loans to 20% of a consumer's gross monthly income.

The ordinance also limits auto title loans to 3% of the consumer's gross annual income, or 70% of the vehicle's value, according to the Texas Credit Union League.

Two other Texas cities – Austin and Dallas – have also placed restrictions on payday loans and auto title loans.   

Ashley Harris, director of public relations for the $394 million Generations Federal Credit Union in San Antonio, told the league the city council's ordinance will help protect the most vulnerable members of the community.

“Predatory lenders, unfortunately, have a strong presence in our community, “ Harris said. “But I do think the council's action sends a valuable message to our community. It lets our citizens know that San Antonio is a community that cares about their financial well-being. And it sends a strong message to the payday lenders that times are changing.”