Taxi Lenders File Suit in New York City
With claims that a plan from the mayor of New York’s office to create up to 18,000 livery cabs would create unfair competition with the city’s yellow cabs, an association of credit union lenders has filed a lawsuit to halt the effort.
The Taxicab Service Association said it filed on April 27 in New York State Supreme Court seeking to invalidate the HAIL Act. According to the group, the act embodies Mayor Michael Bloomberg’s 2011 plan to create a new class of up to 18,000 liveries authorized to pick up street hails in Brooklyn, Queens, the Bronx, Staten Island and much of Manhattan.
That same year, several credit unions partnered with the San Francisco Municipal Transportation Agency to launch a taxi medallion sales pilot program. The $815 million San Francisco Federal Credit Union and its partners the $133 million Montauk Credit Union in New York, the $525 million San Francisco Fire Credit Union and the $714 million San Francisco Police Credit Union were the first to sign on with the city to offer lending services to facilitate the transfer of San Francisco taxi medallions.
Since offering the financing, the three San Francisco credit unions have funded more than 195 loans totaling $38 million, said Steven Stapp, president/CEO of San Francisco FCU.