Meeks Criticizes Sale of Taxi Medallion Loans

Queens, NY - Today, Congressman Gregory Meeks issued the following statement regarding the National Credit Union Administration's decision to sell the majority of its taxi medallion loans to Marblegate Asset Management LLC:

"Taxi drivers have suffered enormous financial strain as a result of the medallion system's broken promise. Not only were medallions massively over-valued, but drivers were then left to compete in an uneven market with little to no hope of ever paying off their debt. NCUA's decision to sell off that debt to a hedge fund only compounds that hardship, abandoning them to debt collection practices that will squeeze them for every last dollar.

"Earlier this year I introduced legislation to provide relief for indebted medallion owners in the event lenders forgave their debt, exempting them for tax liability on that amount. Just as some banks are recognizing the unsustainable bubble of medallion debt and providing debt forgiveness, it is discouraging to see NCUA move in the opposite and wrong direction.

"I stand strongly against NCUA's decision today, and urge medallion owners to not abandon all hope for financial relief as the City, State and Federal government work to provide the justice they deserve."