De Blasio Backs Taxi Medallion Relief Plan, But Taxi Drivers Group Revolts

[TexasTowelie]

NEW YORK — Richard Chow has been taking part in demonstrations demanding debt relief for beleaguered taxi drivers ever since his brother, a fellow cabbie, took his own life.

Both men took out huge loans against the value of their taxi medallions before the taxi industry and medallion values collapsed amid competition from Uber and Lyft.

"The total I owe Marblegate, about $390,000, I owe them," he said.

Marblegate is an asset management firm that is the largest holder of medallion loans

Chow says he’s been unsuccessful in his attempt to refinance his debt. He says Marblegate asked for a $25,000 down payment to restructure the loan.

Read more: https://www.ny1.com/nyc/all-boroughs/traffic-transit/2021/03/10/nyc-taxi-medallion-relief-plan-new-york-taxi-workers-alliance-says-it-is-not-enough

[Hugh_Lebowski]

1. Damn, 390 large? Holy crap that's a lot of money.

I can't believe they were that freaking expensive. Seems like you'd have to drive for a REALLY long time to pay that off, considering you also need money to ... you know ... live.

That's a shitty deal. I support this debt relief too, though I'm not sure who should be responsible for paying.

[FBaggins]

2. At one point those medallions sold for seven figures

Reporting from last year indicated that the average loan was for over half a million before a previous round of debt forgiveness and restructuring.

https://www.marketwatch.com/story/70-million-in-nyc-taxi-cab-debt-forgiven-2020-09-13

The combination of gig-economy drivers plus the pandemic has been devastating for taxi companies/drivers

[PoliticAverse]

3. "The total I owe Marblegate, about $390,000" - bankruptcy exists to relieve people of odious debts.

> A representative for Marblegate calls the mayor’s plan a “surprising but welcome development” that will stabilize the industry.

Yeah because it's effectively a bailout for Marblegate.