What do New York City yellow taxicabs drivers, Evangelical Christians and eastern European immigrants have in common? They all depend on credit unions to own a business, worship at their church and own a home.
App-based transportation services such as Uber and Lyft have brought increased competition to the city of New York's taxicab industry and introduced an element of uncertainty on the value of taxi medallions and potentially to those credit unions that finance their purchase or use them as collateral for other loans.
Credit unions that sued over medallions say they are holding their own.
State high court decision allows the city of New York to sell 2,000 additional medallions for wheelchair-accessible yellow taxicabs.
New York State Acting Supreme Court Justice Arthur Engoron issued a temporary injunction against 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.
Credit unions opposed to a plan from the mayor of New York’s office to create up to 18,000 livery cabs recently received good news.
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.
Lenders group says New York law violates constitutional mandate prohibiting state, mayor from interfering in the regulation of the local taxi industry.