Mayor Bill de Blasio today applauded a major milestone in New York City’s Medallion Relief Program (MRP), which has now helped 102 yellow medallion taxi owners achieve $16 million in permanent debt forgiveness.
Twenty-one of the 102 medallion owners has seen their remaining debt entirely eliminated as a result of the City-supported renegotiations.
More than 1,000 Medallion Owners have already completed appointments with the Taxi and Limousine Commission’s (TLC) Owner/Driver Resource Center and will progress through the restructuring process in the coming weeks and months.
“Every loan restructured is economic justice delivered. Surpassing 100 deals – and keeping $16 million in the pockets of taxi medallion owners – is a major victory for working people across this city,” said Mayor Bill de Blasio. “The Medallion Relief Program isn’t done yet – with hundreds of more owners in the pipeline, we will have more successes to celebrate in the weeks and months to come.”
“The Taxi Medallion Owner Relief Program is successfully lowering debts. Reaching the first 100 Medallion Owners and reducing their original collective $33MM debt by $16MM is an important milestone,” said TLC Commissioner and Chair Aloysee Heredia Jarmoszuk. “Time is of the essence to ensure better financial outcomes for the remaining MRP applicants. We encourage Medallion Owners in need to apply and we remain open to productive collaborations with all willing stakeholders.”
“Many New York City taxicab medallion owners have been crushed by medallion related debt, which has stifled their economic livelihood and barred them from decent living,” said the Department of Consumer and Worker Protection (DCWP) Commissioner Peter A. Hatch. “We are proud of the TLC’s Owner/Driver Resource Center’s ability to provide free legal services and confidential, one-on-one financial counseling to help these essential workers get on the road to financial recovery.”
“In the last few weeks alone, we have achieved some great results for our medallion owner clients, including two owners whose medallions had been scheduled for auction the same week they reached out to us,” said Rose Marie Cantanno, Associate Director of the Consumer Protection Unit, New York Legal Assistance Group. “With our help, their loans were restructured and they benefitted from significant loan forgiveness.”
The Medallion Relief Program
The City of New York will provide $65 million in grants to economically distressed individual medallion owners. This includes $20,000 as a down payment to restructure loan principals and set lower monthly payments, as well as up to $9,000 for monthly debt relief payments.
Many medallion owners will have over $200,000 in debt forgiven, and loan payments reduced to about $1,500 or less per month. Some owners will achieve total debt erasure through settlements.
TLC’s Owner/Driver Resource Center, which offers a range of free financial counseling and legal assistance for TLC Licensees, as well as connecting them with government benefits and health and wellness resources, has already served over 1,000 licensees. TLC Licensees in need of these services can call 311 or visit nyc.gov/taxi to make an appointment.