Originally, Governor Ted Strickland and some lawmakers had proposed a 36% rate for payday lenders. The business, which allows consumers to take out loans to be paid back with in two weeks, has grown 1500% in 11 years.

Along with a 28% rate cap, lower than asked, the bill also calls for at least 31 days to pay back the loan and a maximum loan amount of $500.

"While a lot of people would prefer that we minimize some of the regulations regarding borrowing, clearly as a nation and as consumers we cannot handle it very well," he said. "We need to make sure that whatever legislation we move on payday lending it ends the cycle of entrapment that has found people in circumstances they cannot find a way out of,” House Speaker Jon Husted of Kettering said in defense of the bill.

Borrowers will also be limited to 4 loans per year.

Lobbyist Darryl K. Dever suggested that the bill would cost Ohio about 6,000 jobs and that “right now we are dealing with emotion and politics. We are not dealing with fact.”