NYC taxis. (Source: Shutterstock)
Former New York City Taxi and Limousine Commissioner Meera Joshi is calling on the city to "call out" credit unions and other lenders that she said continue to victimize taxi drivers and taxi medallion owners who were pushed to take out huge loans to finance their businesses.
"It's been a known fact that the loans are mathematically impossible," she told CU Times, adding that many drivers did not understand the ramafiction of the loans they were taking out.
Joshi served as a commissioner from 2011 to earlier this year and had been chair of the commission since 2014. Some city officials have said the commission bears some of the responsibility for the loan debacle because it helped keep the value of taxi medallions artificially high.
The New York Times reported in May that as the taxi medallion "bubble" burst with the growth of ride-sharing services, medallion owners, who had been pushed to take out loans they did not understand, were facing financial ruin.
Three credit unions that made a large number of taxi loans, including Melrose Credit Union, were taken over by the NCUA.
Alan Kaufman, Melrose's former CEO and a former taxi medallion broker, have been indicted on bribery charges. Kaufman has pleaded not guilty to the charges.
And while Melrose was merged into Teachers Credit Union, the NCUA retained control of the taxi loans.
New York City officials have been divided about how to help the drivers, but Joshi said city officials should publicly shame the credit unions and the NCUA into being reasonable.
"The lenders are going to take the hit on this," she said. "It's an opportunity for credit unions to take the hit in a way that benefits" the community.
She said the credit unions, and presumably the NCUA, should renegotiate the loans and set payments that are reasonable.
If they do not, Joshi said, city officials should begin publicly "calling out" the lenders that are not being sufficiently flexible.
She said the city already publicly identifies businesses that are being unreasonable, such as through its list of the city's 100 worst landlords.
The city could do the same for credit unions and the NCUA, she added.
She called the debacle "a publicity train wreck that we all can watch. You have a lot to lose reputationally by continuing to squeeze."
Pressure is continuing to build on city officials and the NCUA to find some way to help the drivers and medallion owners negotiate new loan terms so they can continue to work.
New York City officials have formed a task force to investigate the taxi medallion crisis.
But an investigation isn't enough, New York Democratic Rep. Nydia M. Velázquez and nine fellow New York Democrats said.
"As the Task Force conducts its work, we strongly encourage you to explore ways to provide much-needed monetary assistance to relieve the thousands of medallion holders stuck in high interest loans with tremendous balances," they wrote in a letter to city officials. "Specifically, the Task Force should consider the creation of a relief fund for the taxi medallion holders who have been hit the hardest in this crisis."
The House members said that in addition to improving lending practices, city officials should take immediate action to help those drivers who are facing financial ruin.
New York City Council Member Mark Levine, who helped found a credit union, recently told CU Times that the city should provide financial help to the taxi drivers and medallion owners.
However, New York City Mayor Bill de Blasio has said the city cannot afford the financial help that is being requested. He called on lenders to renegotiate loan terms so that drivers and owners can repay their loans.
Meanwhile, taxi drivers and medallion owners continue to struggle.
For instance, Offer Harari's medallion company filed for Chapter 11 bankruptcy this week, with Harari alleging that he and others were victimized by Melrose.
In an affidavit filed in federal court, Harari said the NCUA, the liquidator for the now-defunct Melrose, said he owes $20 million as a result of loans for which the medallions served as collateral.
Things have gotten so bad, he said, that on July 22, the NCUA repossessed two medallions while drivers were working their shifts, he said. Without those medallions, drivers cannot drive those cabs.
He cited the NCUA Inspector General's report that found Melrose officials loaned money to medallion owners without first determining whether they were likely to be able to repay the loans.
He referred to Melrose as "a criminal enterprise at worst … and at best, a key driver of the entire taxi industry crisis."
"There was no concern or regard for the borrowers or how they would be affected by a drop in medallion prices," he said.
He requested time to negotiate a new payment plan that would allow him to repay the taxi loans and repay other debts.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
