In Texas, the Flower Mound Town Council recently adopted an ordinance that restricts payday and auto title lenders. Town attorney Terry Welch said the interest on these types of loans is very high and that loopholes in state law allow rates to exceed what is technically permitted. Individuals can refinance these loans multiple times, racking up interest rates and fees. When auto titles are used as collateral, those who fall behind on payments can lose their vehicle. Cities across Texas have tried to regulate these businesses to protect consumers from "abusive and predatory" business tactics. The new Flower Mound ordinance mandates that each location register with the town, prohibits multiple credit-access businesses from being located within 1,000 feet from each other, and requires that cash advances under an extension of customer credit not exceed 20 percent of the customer's monthly gross income. An extension of consumer credit also may not be payable in more than four installments, and loans may not be refinanced more than three times.