COLUMBUS — New restrictions that payday lenders say will put them out of business have won final approval from Ohio lawmakers.
The bill now awaits Gov. Ted Strickland’s signature, and a spokesman says that should happen next week. The law would take effect 90 days later.
On a 70-24 vote, the Ohio House on Tuesday passed a final version of the legislation, capping the interest rates on payday loans at 28 percent. Payday lenders now charge about $15 for every $100 borrowed on a two-week loan — which works out to an annual interest rate of 391 percent.
Lawmakers say if the industry can’t deal with the limits, too bad. House Speaker Jon Husted says payday loans have contributed to debt problems that have sent shockwaves through the economy.