Medallion Debt Forgiveness Zoom Rally
Cabbies are calling for an end to the life-long debt and despair caused by the City and we ask for your support as we reach a now-or-never moment in the fight of our lives.
Nine driver suicides. Thousands stripped of their retirement. The city inflated then crashed values & made $850 Million from sales. DRIVERS have been left in ruin. And now, the Taxi and Limousine Commission plans to vote on a Medallion Relief Program that offers no real help.
WE DEMAND A REAL SOLUTION: ADD a City GUARANTEE to the $29K TLC grants to bring down debts to no more than $145,000 principal and $800/monthly mortgage. A city loan guarantee would incentivize medallion lenders to engage in real debt forgiveness; would incentivize community banks to loan to owner-drivers who are able to make cash settlements with their current lender; and would protect families against losing the equity in their homes in case of foreclosure.
Under the TLC’s Plan
For the average debt of $550,000, the new "lowest" principal could be as high as $330,000.
The TLC would allow $2,000 monthly mortgage – leaving drivers earning less than $7/hour.
The TLC is giving room to lenders to RAISE the debt and monthly mortgage above what they have been offering. The largest lender is offering a refinancing plan with a principal ($275,000) that is $55K lower and a monthly mortgage that is $393/month lower than the TLC’s proposal.
The TLC’s approach trades interest for principal instead of lowering both interest and principal. A $200K loan reduced to $120K could be refinanced at $1,932/mo. (20% interest over 20 years)
An additional $9,000 grant to help pay 6 months of mortgage would come with requirements most working owner-drivers won’t meet.
Owner-drivers who receive cash settlement offers from their lenders are not even eligible for the grants.