On this edition of Your Call, we'll discuss the historic New York City cab driver medallion debt bailout victory. After a 15-day hunger strike, the city agreed to provided taxi drivers with millions in aid.
Under the agreement, Marblegate Asset Management — the private equity firm that is the largest holder of medallion loans — will restructure loans to a maximum of $200,000, which then decreases to $170,000 with a grant from the city of $30,000. The interest rate will be capped at five percent over a 20-year term, which will amount to monthly payments of $1,122.
Some drivers owe hundreds of thousands of dollars in loans as they've watched the value of their medallions plummet. At least nine drivers have died by suicide as a result of paralyzing debt.
Guest:
Augustine Tang, 37-year-old hunger striker who has been driving a taxi for five years after inheriting his father’s medallion and the $530,000 loan attached to it. Augustine is a member of NY Taxi Workers Alliance and friend of the late Kenny Chow (medallion owner) who was one of the nine drivers that died by suicide
Web Resources:
The City, Samanatha Maldonado: Taxi Drivers Savor Victory as Medallion Debt Bailout Deal Ends Hunger Strike