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Columbus, Ohio — After firing a shot across Democratic Gov. Ted Strickland's bow, House Republicans — at least most of them — joined forces with Democrats to pass legislation aimed at cracking down on payday lending abuses.

It includes a 28 percent interest rate cap, limits on the number of loans and other regulations.

The final vote Wednesday, April 30, on House Bill 545 was 69-26. It now goes to the Senate where passage appears favorable.

Currently fees are usually $15 for every $100 borrowed for two weeks, which calculates to an annual percentage rate of 391 percent. Opponents say the new cap will put payday lenders out of business, wiping out 6,000 jobs. Backers say the bill will provide affordable short-term loans.

Rep. Chris Widener, R-Springfield, won praise for his role in the bill from state payday lending critic Bill Faith.

Widener, chairman of the House Financial Institutions, Real Estate and Securities Committee, fashioned a bill that will be a national model for regulating the industry, said Faith of the Ohio Coalition for Responsible Lending.

Faith said he began sensing last week that Widener was coming to the conclusion that a way needed to be found to end the "cycle of debt" critics say traps unwary borrowers.

Faith said Widener showed him the bill in his office and after reading it told the lawmaker, "This is fabulous."

"I've been sitting here 15 minutes waiting for you to say that," Faith said Widener responded.

Rep. Ross McGregor, R-Springfield, voted against the bill. McGregor had written a bill that would not have regulated lenders, but not capped interest rates.

He said he was surprised by the new legislation that capped interest rates even below what payday lending critics had asked for.

The House vote came after political gymnastics that irked Democrats. Rep. John Adams, R-Sidney, proposed an amendment prohibiting the Ohio Lottery Commission from adding electronic Keno games that Strickland wants to use to help plug a projected budget hole.

If Strickland and others want to save the poor from the perils of payday lending, they shouldn't exploit them with addictive gambling, amendment backers said.

The amendment passed 49-46, with all Republican votes. But the victory was short-lived. After both Democrats and Republicans caucused, the House reconvened, then tabled the amendment before approving the bill.

Speaker Jon Husted, R-Kettering, said he told amendment backers during the Republican caucus that they made their point. "But we didn't want to jeopardize the rest of the bill which I felt was very good consumer protection legislation," Husted said.

On the final vote, 29 Republicans joined 40 Democrats in support.

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