COLUMBUS, Ohio -- Payday lenders could face new regulations to limit the interest rates they can charge customers.

State Rep. Tyrone Yates announced Friday plans to introduce a payday lending reform bill.

His proposed Payday Lending Fairness and Accountability Act would repeal the rules for cashing lenders that were passed in 1995 and exempted them from usury laws.

Under the plan, payday lenders would be limited to 25 percent interest for loans.

In a written statement Yates said the bill also includes other consumer protections.

“Payday lenders prey on people who need help the most,” Yates said.

Yates said borrowers often find themselves trapped by short-term loans, unable to pay them back.

Payday lenders deny that they prey upon customers who are least able to afford their services.

An industry-sponsored study found 96 percent of payday borrowers pay back their loans on time.

Jim.otte@whiotv.com