A union representing New York City’s beleaguered taxi drivers is seeking “mission-driven” credit unions and banks to purchase and refinance loans that drivers remain unable to pay.
At the National Credit Union Administration budget hearings, the National Association of Federally-Insured Credit Unions praised the NCUA for selling the taxi medallions it held. New York City officials are still seeking a way to assist the taxi drivers.
Saying that he believes that predatory lenders took New York City taxi drivers “for a ride and left families in a wreckage of financial distress and despair,” New York City Comptroller Scott Stinger Thursday endorsed a driver bailout plan proposed by the New York Taxi Workers Alliance. “We have a fiscal and moral obligation to make this right—and embracing this plan is a start,” said Stringer, who is a candidate for New York City mayor. Stringer said that he has reviewed the plan and has concluded that it offers a comprehensive risk management approach that could reduce future liability and
The New York City Taxi Workers Alliance wants New York City to be the guarantor of the taxi loans that the National Credit Union Administration sold to Marblegate Asset Management after the credit unions originally holding the loans failed. The arrangement should help the taxi drivers who owe on the loans.
Twenty members of the New York City city council earlier this month urged Mayor Bill de Blasio to support a plan to help taxi medallion owners saddled with loans that were once owned by the National Credit Union Administration. “The collapse of our City’s Medallion market, properly understood, should and will be remembered as one of the greatest government failures in the history of New York City,” the members, including Ritchie Torres, who earlier this year tried to put together a public-private partnership to help drivers wrote. They added, “After buying an asset because they had a guarantee from the
Marblegate, the private equity firm that purchased taxi medallion loans from the NCUA, says it is working with cab drivers who are having trouble repaying. The New York Taxi Workers Alliance does not think enough is being done.
The private equity fund that purchased New York City taxi medallion loans from the National Credit Union Administration is so far unwilling to negotiate reasonable settlements with drivers who are unable to repay the money they borrowed from credit unions and banks, Bhairavi Desai, executive director of the New York Taxi Workers Alliance said Wednesday.
Marblegate Asset Management, the company that purchased thousands of New York City taxi loans from the National Credit Union Administration, is extending a fourth 30-day payment holiday for drivers whose business has been devastated by the coronavirus pandemic.
The National Credit Union Administration will not disclose the financial details surrounding its sale of thousands of taxi medallion loans, agency Acting General Counsel Frank Kressman said in a recent letter.
A public-private partnership plan to help debt-burdened New York City taxi drivers is being revived by a city councilman and the founders of a mobile app designed for the taxi industry.