The Senate Business and Commerce Committee in Texas recently approved a third version of a payday lending bill proposed by Sen. John Carona (R-Dallas). The update includes provisions championed by consumer protection groups to help low-income borrowers avoid a cycle of debt. The legislation aims to specify four types of loans that payday and auto title companies can offer, as well as limit loan amounts and restrict how often consumers can refinance the loans. The measure, approved by the committee on a 6-1 vote, would limit loans to 20 percent to 30 percent of a borrower's monthly income. Single-payment payday loans could be refinanced four times, while single-payment auto loans could be refinanced six times. According to the Office of Consumer Credit Commissioner, a limit on refinancing could curtail the charges borrowers pay by $132 million to $221 million per year.