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SANANTONIO -- Payday and auto title lenders face tougher restrictions in San Antonio after city council on Thursday passed a controversial ordinance.

Proponents said it's a victory for borrowers, while lenders claim the ordinance prevents needy people from getting loans.

Under the ordinance, payday loans will be limited to 20 percent of the customer's gross monthly income.

Auto title loans will be limited to 3 percent of the customer's gross annual income or 70 percent of the vehicle's value.

Lenders will also be restricted on the number of times it can refinance a loan.

All we are trying to do is provide a safety net for people that doesn't currently exist, said Councilman Diego Bernal, who championed the ordinance.

Deborah Reyes, a lobbyist for Advance America, said, These ordinances, while they may have good intention, are actually harming consumers.

Dallas and Austin both recently passed similar restrictions. Both cities now face lawsuits.

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