Virginia legal advocates are on the lookout for attempts to subvert the state's Fairness in Lending Act.

The 2020 law establishes a fair regulatory framework for lending in the state - but it seems some lenders are finding ways around it, such as referring to different types of loans as an "advance."

A Consumer Reports investigation has found some "advances" have been offered at an interest rate of 490%.

Jay Speer - executive director of the Virginia Poverty Law Center - said despite the name change, it's still a loan.

"They're giving you money now and you've got to pay it back later for a fee," said Speer. "But again, they don't want to come under the Fairness in Lending Act. They don't want to give people loan disclosures - like the Truth in Lending Act disclosures - to see how much you're being charged, so they try to pretend they're they're not a loan."

Legislation has been introduced to protect Virginians from these loans. House Bill 648 doesn't ban probate advances, but it clarifies that they are loans under Virginia law.

While Speer said the goal isn't to ban these loan products, his group wants to see better consumer protections for them.

He said he thinks House Bill 648 can make it through the session with little opposition.

But probate advances are only one concern. House Bill 330 regulates so-called "puppy loans," by requiring pet shops to comply with the federal Truth in Lending Act.

Like probate advances, they include high interest rates and nonspecific terms. Yet, Speer noted that what they're doing isn't unfamiliar.

"They're doing the same thing the payday lenders did over 20 years ago, which is claim they're not actually loaning you money," said Speer. "That it's a bank somewhere out of state - and in this case, probably Utah - making the loan to you and therefore, they're not subject to our usury laws."

Transportation Alliance Bank or "TAB Bank" has backed these loans.

A National Consumer Law Center report finds TAB Bank helped noted predatory lender EasyPay Finance make pet loans at 130% to 188% interest, which is illegal in most states.

Speer said since TAB is chartered in Utah and supervised by the Federal Deposit Insurance Corporation, EasyPay Finance can "launder" its loan through the bank.

This week, Ohio approved adult-use marijuana sales as part of a 2023 ballot measure, with sales anticipated to start mid-June.

Ohioans age 21 and over can now legally purchase marijuana across the state. In December, a law was enacted allowing people to grow and possess marijuana, but with no legal avenues to purchase it. Gov. Mike DeWine and some Republicans sought swift action to prevent black market sales.

Jim Canepa, cannabis control superintendent for the Ohio Department of Commerce, said after years of experience in liquor control, his role is to fairly and responsibly permit folks who grow, process, sell and test cannabis.

"My focus right now is really on coming up with the rules that are required and set forth, and the timeline set forth, in the initiated statute," Canepa explained. "They are June 7th to have the applications ready, and September 7th to start issuing permits."

The Joint Committee on Agency Rule Review approved the rules without objection, enabling a dual licensing program for existing medical marijuana dispensaries to also sell nonmedical cannabis products.

Ariane Kirkpatrick, CEO of the cannabis company Harvest of Ohio, said her dispensaries are ramping up to meet the anticipated demand.

"How are we going to do staffing?," Kirkpatrick asked. "We're looking at parking, so, at the different ordinances of the cities of where we're located, to make sure we have the proper parking. Looking at drive-through, because some of our locations might have been limited already as far as capacity."

The new legislation allows for people age 21 and older to buy and possess up to 2.5 ounces of cannabis, or 15 grams of cannabis extract, and the home cultivation of up to six plants for personal use and up to 12 plants with two or more adults in the household.

Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.


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Massachusetts residents struggling to pay high food prices are acquiring a growing amount of debt to pay their bills, according to a new report.

The Urban Institute found 60% of adults reported using credit cards to buy groceries but only 20% managed to pay the minimum monthly payment.

Kassandra Martinchek, senior research associate at the Urban Institute, said nearly 25% of families have dipped into savings to keep everyone fed.

"Some families are really struggling to even meet their basic needs and are taking riskier financial strategies that could leave them less capable to cope with a future financial shot," Martinchek pointed out. "Something like losing their job."

While U.S. inflation slowed last year, the average Massachusetts household continued to spend more than $270 a week on groceries with Boston ranking in the top 20 cities with the highest grocery prices.

The report shows adults with very low food security were also more likely to experience challenges in repaying their debt compared with those with less severe food hardship. For families taking advantage of "buy now, pay later" options, 37% reported missing payments on their loans.

Martinchek emphasized missed debt payments during a time of price hikes could have long-lasting effects.

"They could have constrained access to affordable credit options and struggle to take advantage of different wealth building opportunities," Martinchek noted.

Martinchek added it is especially the case for historically disadvantaged households. The report suggests policymakers strengthen social safety nets to help families as pandemic aid expires, and to bolster credit counseling and debt-management services.

Ohio lawmakers are exploring ways to address the state's looming retirement crisis.

According to The Pew Charitable Trusts, if the personal retirement savings situation remains unchanged, Ohio could expect to see a more than $11 billion increase in state spending over the next two decades.

House Bill 501 would create a Joint Legislative Study Committee tasked with studying retirement options for small businesses and state-facilitated workplace programs to improve access to retirement savings.

Amy Milam, associate state director of outreach and advocacy for AARP Ohio, said people are more likely to save for their golden years when they can do so by having a percentage of their paycheck deducted.

"In Ohio, we have 42% of Ohio's private sector workers -- that's roughly 1.8 million people -- who do not have access to a retirement savings plan through their employer," Milam reported.

Nationwide, around 64% of Hispanic workers, and 45% of Asian American workers lack access to an employer-provided retirement plan. According to an AARP report, almost three of four workers with less than a high school diploma lack a work-based retirement plan, a much higher percentage than those with a bachelor's degree.

Milam added more than a dozen other states have created partnerships with employers to offer state-sponsored plans to give employees access to Individual Retirement Accounts.

"Giving employees a simple way to save for retirement on the job means that fewer Ohioans will need to rely on public assistance later in life," Milam emphasized. "Which will benefit the individual and will also benefit the state by saving taxpayer dollars."

In some states, investment companies have pushed back on state-sponsored plans, seeing them as competition. But a 2023 survey by AARP found 92% of Ohio business owners support legislation creating a public-private retirement savings option for workers.