Concerned that proposed tougher payday-lending regulations are bogged down in the Ohio House, two senators said they will propose their own interest-rate caps in the Senate.

"My goal is to kick-start the process by moving our bill and sending it over" to the House, said Sen. Timothy J. Grendell, R-Chesterland, who will push the bill with Minority Leader Ray Miller, D-Columbus. "It seems to be stalled over there, so maybe we can get this issue some activity."

The bill will be a copy of House Bill 333, which has been pending in a House committee since early October. It limits the annual interest rate charged on a typical two-week loan from the current 391 percent (about $15 per $100 borrowed) to 36 percent.

More than 1,600 payday lending stores operate in Ohio, and the industry has fought hard against a lower interest-rate cap, arguing it would put them all out of business. Industry officials say they offer a valuable service to those who can't get a loan anywhere else and are a better option than late fees or bounced checks.

Opponents say the two-week loans trap too many people in a cycle of debt, where they need a new loan to pay off the previous one.

Grendell said he remembers the impact of short-term loans on military personnel when he was an attorney in the Army. A recently enacted federal law said loans to military personnel cannot exceed a 36 percent annual rate.

"These kind of short-term loans can come back to bite people, especially the ones who can least afford it," he said.

"I'm a free market guy. But there are certain aspects of the free market that have potential potholes in it. When it comes to short-term lending, it's an area that invites problems."

The House Financial Institutions Committee has held a few hearings on House Bill 333 and two other payday bills, including one backed by the industry. When asked recently, committee Chairman Rep. Christopher R. Widener, R-Springfield, gave no indication when he hopes to move one of the bills.

jsiegel@dispatch.com