A California judge has agreed to delay until March 15 the trial of a dispute between the San Francisco Federal Credit Union and city officials over who is responsible for taxi medallion loans whose values have plunged.
In a suit filed in San Francisco County Superior Court, the San Francisco Federal Credit Union argues that the city’s transit agency agreed to sell transferable taxi medallions to drivers for $250,000. According to the suit, filed in March 2018, the city asked the credit union to assist in the sales by making loans to drivers purchasing the loans. In exchange, the credit union said, the city agreed to guarantee the loans that were made to drivers.
As in many cities, the value of taxi loans has plunged in San Francisco, leaving many drivers unable to repay their loans.
The city denies it has responsibility for the loans.
The credit union had asked the court to maintain the schedule trial date of Sept. 28, but city officials said the pandemic has made it impossible to prepare for trial.
Superior Court Judge Garrett Wong rescheduled the trial for March 15 but gave no reason for the change.