New York State Attorney General Letitia James Endorses NYTWA’s Debt Relief Proposal
New York Attorney General Letitia James today released the following statement in support of a relief package introduced by the New York Taxi Workers Alliance that will provide New York City’s taxi medallion owners with debt forgiveness on outstanding loans on taxi medallions:
“Hardworking taxi medallion individual and owner-drivers entered this industry believing the city would run a fair system. Instead, many of these workers and small business owners were sent down a rabbit hole of financial ruin. After reviewing the proposal by the New York Taxi Workers Alliance, and understanding that the city’s chief financial officer, Comptroller Scott Stringer, has come out in support of this plan, I believe it is essential that we move forward on this relief package immediately to mitigate the harm already done. This proposal would provide a fiscally fair and responsible way to support the recovery of the taxi medallion industry by guaranteeing loans written down to no more than $125,000. This relief package not only lays out the best way to support the needs of a community that has been economically devastated but will help to ensure justice is finally delivered.”
Statement from our Executive Director: Bhairavi Desai
"We want to thank Attorney General Tish James for standing with yellow taxi owner-drivers and endorsing NYTWA's proposal for debt forgiveness. The Attorney General's office has been investigating predatory lending and the role of the city in creating the crisis of debt that owner-drivers are now facing. Now, our Attorney General is calling for justice to be served by implementing NYTWA's proposal.
"AG James' endorsement follows New York City Comptroller Scott Stringer's announcement of support for our proposal, which he vetted and found to be fiscally sound. Our proposal is for the city to backstop medallion loans restructured to $125,000, at a maximum cost to the city of $75 million over 20 years. By comparison, NYC's annual budget is approximately $90 billion. Our proposal minimizes financial risk at little cost to the city. The Mayor can no longer use budget shortfalls as an excuse not to act. We hope the Mayor is moved by the moral calling in AG James' endorsement.
"Let's go, Mr. Mayor. Together, we can fix this crisis. Heed the words of AG James and allow justice to be served. The lives of 6,000 owner-drivers and individual owners, who did not cause this crisis, depend on it. We can take action now to stop the collapse of a 100-year industry with 20,000 workers."
What We Are Fighting For:
We are calling on lenders to restructure medallion debt to $125,000 and refinance for no more than 20 years at $757 per month (4% interest rate.)
We are calling on the New York City Government to use its power and resources to support our survival. We ask that the City play a "backstop" role for loans that are restructured to $125,000 in order to incentives lenders to restructure medallion loans.
We call on Congress to pass Congressman Gregory Meeks' bill (House bill 5617) for tax exemption on medallion debt forgiveness
We recommit our demand to return foreclosed medallions in storage to the original owner at the same proposed terms.