Must read: How does the San Antonio city ordinance work?
Because Texas has failed to pass legislation that would help control payday lending in the state, many cities have taken it upon themselves to enact ordinances that control credit access businesses (CABs).
In San Antonio, consumers can borrow no more than 20% of their gross monthly income. All loan contracts must include a bilingual form that states how payment and interest works and the alternative options to payday loans. Additionally, you may renew a loan three times but must first reduce the principal by 25%.
These ordinances are designed to help protect people from predatory loans that attempt to trap consumers in a cycle of debt.