COLUMBUS, Ohio -- With the stroke of a pen, Ohio Gov. Ted Strickland launched the nation’s toughest payday loan regulations, capping interest rates at 28 percent.

The regulations also limit the number of loans per person per year at four, designed to prevent people from being caught in a cycle of debt.

The bill was sponsored by Springfield State Rep. Chris Widener, R-Springfield.

In an interview with WHIOTV.COM, Widener said the bill was more than a year in the making.

Widener was at the governor’s side when he signed it in a Statehouse ceremony Monday.

“It’s certainly a good feeling knowing that consumers are going to be better protected. We know that they won’t be paying outrageous interest rates,” Widener said.

The payday lending industry protested in opposition against the reform plan, threatening the loss of 6,000 jobs and the closure of many lending offices.

Widener makes no apologies for the reforms, saying consumers were being overcharged for short term loans.

“We feel this is a much more controlled and reasonably priced product that will be available to them,” Widener said.

Doug Penny, who operates a small payday lending business in Englewood, predicted it will hurt many consumers in the long run.

“The customers who come here cannot generally speaking go to credit unions or their banks. The credit cards are usually maxed out. There are going to be more bankruptcies over this. I really think that,” Penny said.

The payday lending reform law takes effect in 90 days.

Jim.otte@whiotv.com