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‘A horrible cycle’ of payday lending: 5 things you need to know

Published: Wednesday, June 13, 2018 @ 11:33 AM

Financial advisors have known for a long time that Payday loans are terrible for the way they charge high interest rates on people who desperately need money. And now Google is saying that it will no longer allow Payday loan companies to advertise using their crucial internet advertising services.

Dayton Daily News reporters Thomas Gnau and Laura Bischoff take an in-depth look at payday lending — and how the high-interest loans are impacting people in the region. Read the full report here to understand what’s really going on.

One out of 10 Ohioans have used payday loans to make ends meet, according to a local lawmaker looking to change a system that some people say has ruined their financial lives. Supporters of payday lending say House Bill 123, which passed last week by the Ohio House, will cut off access to money for up to 1 million people in the state.

Here are five things you need to understand about payday lending:

1. TWO SIDES For one side, short-term or payday lending is a legitimate business meeting a real need. For others, these low-dollar loans become expensive life-wreckers. “Essentially these corporations, they’re making their profits off the back of poor people,” said Cherish Cronmiller, president and chief executive of Dayton’s Miami Valley Community Action Partnership, supported HB 123.

» TRENDING NEWS: Payday lending a ‘horrible cycle’ for some Ohioans

2. COSTLY ACROSS THE U.S. Nationwide, some 12 million Americans take out high-cost, small-dollar loans each year, spending $9 billion on fees alone, according to The Pew Charitable Trusts. Pew also says Ohio borrowers on average pay a 591 percent annual percentage rate, the country’s highest rate.

3. LOCALS IMPACTED In 2015, Charles Cline of Dayton said he’d been stuck in the payday lending trap. He said he took out a $1,000 loan and ended up paying $1,600, due to extensions, fees and interest. “Trying to help yourself get out of a bad situation, you end up hurting yourself more. They are preying on people that are poor, that are less fortunate, that need to get by throughout the week,” said Cline, adding he won’t be taking another payday loan.

4. HIGH FINES AND FEES Payday lenders usually charge interest of $15 to $20 for every $100 borrowed, according to the Consumer Finance Protection Bureau. The lenders let borrowers “roll” the debt forward, delaying payment until next month — and saddling borrowers with fees and interest.

5. FILLING A NEED Cheney Pruett, a Texas resident who owns 59 CashMax stores in Ohio — including at least three in the Dayton area — called the bill “fatally flawed.”

He acknowledges that some consumers find themselves stuck in cycles of debt, paying refinance fees for too long. But he said few customers find themselves on that “payday hamster wheel,” and his stores offer installment loans. He also said his loans in Ohio run closer to $11 charged for every $100 borrowed.

The Dayton Daily News is committed to bringing you in-depth coverage on topics that matter to you. Read more about the impact of payday lending in your community in this special report

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NEW DETAILS: Columbus firm could take reins of downtown Dayton project

Published: Monday, June 18, 2018 @ 11:30 AM

The Fire Blocks District is centered around the 100 block of East Third Street. CORNELIUS FROLIK / STAFF
The Fire Blocks District is centered around the 100 block of East Third Street. CORNELIUS FROLIK / STAFF

A Columbus-based company is looking at taking over a project to redevelop of the Fire Blocks District in downtown Dayton, which faces a key deadline this month related to state tax incentives.

Dayton’s city manager and other sources have confirmed with the Dayton Daily News that the Windsor Companies is interested in the project.

Scott Gibson, CEO of the Ellway Group, confirmed there is a group attracted to the project, but declined to identify them.

The Ellway Group owns many buildings in the Fire Blocks District, which is centered around the 100 block of East Third Street.

RELATED: Dayton Fire Blocks District could get new developer

Windsor Companies was behind the renovation of the Vetro Lofts in Italian Village in Columbus.

Windsor bought the building in 2013 in a court auction for $4.3 million and converted its apartments into 35 luxury condos, which are very modern and sleek, according to the Columbus Dispatch.

Units are selling for more than $300,000. The Dispatch identified Alex Dorsey as the principal of Windsor.

In 2013, Windsor purchased a vacant senior housing complex in Hilliard for about $8.3 million, not including the costs of a negotiated settlement with bond investors, according to Columbus Monthly.

The Dayton Daily News has contacted the company and will update the story with its responses.

RELATED: Dayton’s Fire Blocks faces deadline, could lose $4.5M in funds

Time is running out for a project to rehab two of the Fire Blocks buildings: the David (or Huffman Block) building and the Elks building.

In 2016, Ellway Group was awarded about $4.5 million in state historic tax credits to rehab the structures.

But earlier this year, the state told the developers that the project had not made sufficient progress. The state gave developers until the end of this month to prove the project has financing or return the tax credits.

Last week, Downtown Dayton Partnership Executive Director Sandy Gudorf said the Fire Blocks redevelopment plan was being restructured and a new developer was at the table.

Though she declined to identify the company, she said they have the capacity and vision to get the project completed.

CityWide president Brian Heitkamp also confirmed last week that the Fire Blocks project could get “new blood.”

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Construction begins on hotel near Rose Music Center

Published: Monday, June 18, 2018 @ 11:05 AM

This rendering shows a typical Tru by Hilton hotel. CONTRIBUTED
This rendering shows a typical Tru by Hilton hotel. CONTRIBUTED

Early construction has begun on a new hotel near the Rose Music Center at The Heights in Huber Heights.

Footers and cement work are in place, said Donnie Jones, Huber Heights assistant city manager.

MOREHospital buys more land near Austin Landing. 

“I think all the ground work is either finished or underway,” Jones said Monday.

A building permit filed with the city of Huber Heights gives the value of the project as $6 million and identifies the contractor as Alpha Construction. The address is 7000 Executive Blvd.

MOREWashington Twp. office building sells for nearly $1M

The hotel will be branded Tru by Hilton. The concept involves smaller, efficiently designed rooms with larger lobbies, approaching 3,000 square feet, offering room for work and games.

Hilton describes Tru as “a brand-new hotel experience from Hilton that’s vibrant, affordable and young-at-heart.”

The site’s developer, LAXMI Hospitality LLC, will construct a multi-story hotel with 88 to 100 rooms, City Manager Rob Schommer told this news outlet last month.

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Did Kroger make the list? America’s top 13 favorite grocery stores

Published: Monday, June 18, 2018 @ 11:24 AM

Kroger Closing Some North Carolina Stores

Some grocery chain have shoppers who are majorly loyal to their stores.

Marketforce surveyed nearly 13,000 U.S. consumers, and asked them about their grocery shopping habits including brand preference, customer experience and brand awareness. About 48 percent of customers were very satisfied with their customer experience during their last grocery visit, according to the survey.

» TRENDING COVERAGE: 5 surprising ways Kroger is changing stores in 2018

So, what brands rank highest for customer loyalty? These stores came out on top:

1. Publix Super Markets

2. Wegmans

3. Trader Joe’s Market

4. H-E-B

5. ALDI

6. Harris Teeter

7. Hy-vee Food Stores

8. Costco

9. WinCo Foods

10. While Foods Market

11. Fry’s

12. Kroger

13. Target

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Frisch’s to bring back Coca-Cola at all restaurants

Published: Monday, June 18, 2018 @ 10:10 AM

FILE
Staff Writer
FILE(Staff Writer)

It’s back.

Frisch’s is bringing back Coca-Cola drink products to its restaurants. Frisch’s CEO Jason Vaughn announced on Monday morning that the chain will switch back to Coke products.

Frisch’s switched to Pepsi in 2013, and fans criticized the move after the restaurant’s 50-year partnership with Coke. Coca-Cola is expected to come back to restaurants in September 2018, Vaughn said.

Fans reacted to the news on social media:

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