MONTPELIER — Vermont is poised to become the first state to enact a law to regulate companies that offer cash advances on pensions, typically at high interest rates.
A bill that would require those companies to register with the state as lenders has passed the House and Senate and is headed to the governor, who is expected to sign it.
AARP Vermont, the association that represents senior citizens, initiated the push for a law. Vermont State Director Greg Marchildon said he started seeing online ads last year offering upfront cash for people’s pensions and became worried.
“It’s unscrupulous at best,” he said of the pension loan practice that is drawing increasing attention around the country. “The idea was to get ahead of the problem before it became a problem.”