COLUMBUS, Ohio -- After months of debate, members of the Ohio House of Representatives passed tough, new regulation of the payday lending industry Wednesday.

For the first time in Ohio, fees on payday loans would be capped at 28 percent.

Rep. Chris Widener, R-Springfield, chairman of the Financial Institution Committee, said it was time for the state to step forward and pass new regulations.

Speaking to members of the Ohio House, Widener said the bill would add new protections for consumers.

“As legislators sometimes we have got to step up and do something. And this is the time when we have got to do something. We need to eliminate the current check cashing law in Ohio,” Widener.

Widener said the current law is not working for families and individuals.

He pointed out that some people are taking out payday loans nearly every week or every other week.

“Today is the day we have to step up and make a change,” Widener said.

The bill won bi-partisan support, including the endorsement of a top Democrat who had pushed for many months for less comprehensive legislation.

Rep. Robert Hagan, D- Youngstown, acknowledged the new regulations would push some payday lenders out of the state.

“We’re not trying to hurt someone, we’re trying to make this a better state,” said Hagan.

Advocates for the payday lenders in Ohio said about 6,000 people work in the industry statewide and predicted the new regulations would put many of them out of work.

In an interview with WHIOTV.COM, Widener said members of both sides of the aisle appreciated efforts to protect consumers.

“We need to eliminate check cash lending as is currently laid out in Ohio and provide for some new products under the umbrella of the protection of the Small Loan Act which already caps fees and interest at 28 percent,” Widener said.

The bill was nearly derailed by an attempt to amend the plan with a provision to block Gov. Ted Strickland’s proposal to expand the Ohio lottery with keno games.

At first, the amendment passed, threatening the entire payday regulation bill.

Later, after a break in the House session, the amendment was removed from the bill.

The bill goes next to the Ohio Senate.

Widener said he is hopeful the bill will be well received in the Senate.

Jim.otte@whiotv.com