NEW YORK – Richard Chow has been on protests calling for debt reduction for besieged taxi drivers since his brother, one other taxi driver, dedicated suicide.

The pair took out enormous loans on the worth of their taxi medallions earlier than the taxi business and medallion values ​​collapsed within the face of competitors from Uber and Lyft.

“The overall quantity I owe Marblegate, about $ 390,000, I owe them,” he mentioned.

What would you wish to know

  • De Blasio introduced on Tuesday that town would create a fund to supply $ 20,000 interest-free loans to locket house owners that they may use as down funds to restructure their money owed.
  • One other $ 9,000 may very well be borrowed to cowl month-to-month mortgage funds
  • The New York Taxi Staff Alliance protested exterior Gracie Mansion in opposition to the plan as a money present to lenders

Marblegate is an asset administration firm which is the most important holder of medallion loans

Chow says he failed in his try and refinance his debt. He says Marblegate requested for a down fee of $ 25,000 to restructure the mortgage.

“I haven’t got $ 25,000. I do not work, “he mentioned.” I’ve diabetes, I’ve hypertension, I’ve had a coronary heart assault. I can not go to work. “

Underneath a plan introduced Tuesday by Mayor Invoice de Blasio, town would create a fund to supply $ 20,000 interest-free loans to house owners of lockets like Chow that they may use as down funds to restructure their money owed.

As well as, locket house owners might borrow as much as $ 9,000 to make their month-to-month mortgage funds.

Town would use $ 65 million in federal stimulus cash earmarked for the fund.

“I believe this new plan will make a distinction for lots of riders, and that is a part of how we go ahead,” mentioned de Blasio.

“This substantial upfront fee from town will permit locket house owners to work with lenders to reset their mortgage phrases,” mentioned Aloysee Heredia Jarmoszuk, President of Taxi and Limousine.

However the principle group advocating yellow cab drivers, the New York Taxi Staff Alliance, denounced the plan as inadequate.

“It is an insult to the harm. It is a money present to the business’s greatest lender and does completely nothing for the 1000’s of households who’re struggling and struggling, ”Bhairavi Desai, president of the New York Taxi Staff Alliance, mentioned at a rally. .

Taxi drivers collect in Manhattan on March 9, 2020, claiming town’s multi-million greenback plan to assist taxi drivers battling a mountain of debt is woefully insufficient. Dan Rivoli / NY1.

The alliance needs town to cut back every medallion debt to not more than $ 125,000, cap month-to-month mortgage funds at $ 750 and assure every mortgage.

The alliance says it plans to carry common protests till its debt reduction plan takes impact.

A consultant from Marblegate calls the mayor’s plan a “shocking however welcome improvement” that can stabilize the business.


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