Taxi Drivers Plead With NYC To Offer Better Debt Relief Deal

The Taxi and Limousine Commission defended its new debt relief program for drivers Friday, claiming it’s already wiped millions in debt off the books. But at a City Council hearing, drivers said the terms lenders are offering still leave them working for less than minimum wage.

The city’s Taxi Medallion Relief Program is set up to help drivers restructure their loans to more favorable terms. The city will provide $20,000 to lenders to reduce the amount drivers owe, and then provide another $9,000 to drivers whose monthly payments come out to more than $1,500.

Over the past decade, the taxi industry has weathered the entrance of app-based for-hire vehicle companies like Uber and Lyft. These new “e-hail” drivers flooded the streets, and the value of a yellow taxi medallion plummeted from more than $1.2 million at its peak in 2014 to about $100,000 today.

Eight taxi drivers took their own lives in 2018, many citing heavy debt burdens as the reason.

Read more: https://gothamist.com/news/taxi-drivers-plead-nyc-offer-better-debt-relief-deal