Big payday loan changes are percolating in Ohio. Recently, an Ohio House payday lending law passed, capping short-term loans at 28 percent annually. This is a big change for payday loan laws in Ohio.

The bill didn’t pass without drama. The majority-party Republicans inserted an amendment into the payday lending legislation that would have banned the Ohio Lottery from offering Keno games. After a brief recess, Republicans pulled a U-turn and took the Keno amendment back out of the bill, which then passed in a 69-26 bipartisan vote.

The payday lending bill, which lawmakers of both parties described as necessary to free consumers from an industry entrapping them in a cycle of debt, will force lenders to slash the rates they charge consumers. Stay tuned to see what happens in the Senate.

Payday lenders currently can charge $15 for every $100 lent over a two-week period, which works out to a 391 annual percentage rate. Under the new bill – which now heads to the Ohio Senate, where supporters are confident it will pass – annual rates would be capped at 28 percent.

Payday loan industry officials have said the new rate cap will force them out of business in Ohio, a pattern seen in places like Oregon and North Carolina where rate caps sent payday lenders hightailing.