Thursday, May 18, 2017

Group Asks NCUA to Stop Bullying Medallion Owners

The Committee for Taxi Safety has requested that the National Credit Union Administration (NCUA) stop its assault on the taxi industry and show some human decency.

In a May 12 letter, David Beier, president of the Committee for Taxi Safety, wrote that "NCUA's unwillingness to work with medallion owners has put the very survival of our industry at risk."

The letter stated that the only lender not working with medallion owners is Melrose Credit Union, which is currently under conservatorship with NCUA.

The NCUA conserved lender is accused of taking a hardline stance with medallion owners by demanding large down payments or liens on primary residences to renew loans.

Even when borrowers comply with these demands, borrowers face substantial increases in the interest rates on their medallion loans.

The letter contends that NCUA's actions are that of a bully and will result in the financial ruin for thousands of medallion borrowers.

Beier asks "NCUA to act responsibly" and to work with struggling medallion owners.

Moreover, the letter suggests that NCUA is making things worse, which could adversely impact other medallion lenders.

Read the letter below.

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