2017-10-18 / Front Page

Congressional Delegation:

Help Medallion Owners Now ‘Met With Unfair Repayment Demands’
U.S. Rep. Grace Meng, joined by seven other members of the New York City Congressional Delegation, sent a letter to the National Credit Union Administration (NCUA) on October 12 calling on the agency to work with borrowers who used Queens-based Melrose Credit Union to finance the purchase of New York City taxi medallions.

In February, NCUA assumed control of Melrose – whose loan portfolio is more than 90 percent comprised of medallion-backed loans – after the New York State Department of Financial Services found “unsafe and unsound conditions” at the credit union. Many loans have been required to be rapidly repaid in full, reportedly resulting in the bankruptcy of 35 borrowers so far.

“Cab drivers and medallion owners have been suffering terribly from the decline in medallion values and now some who borrowed from Melrose are being met with unfair repayment demands,” said Rep. Meng. “This burden is turning the lives of hard-working taxi drivers upside down, threatening their livelihood and forcing many into bankruptcy. It is also threatening the survival of the New York taxi industry. NCUA must do what it can to stop the bleeding. The agency should seek to protect medallion owners as much as it possibly can. Borrowers, through no fault of their own, have hit hard times due to a changing industry; they need help. I eagerly await the agency’s response to our letter.”

Melrose Credit Union was established in 1922 and is presently located at 139-30 Queens Boulevard in Briarwood. NCUA is an independent federal agency that was created by Congress to oversee federal credit unions. It also insures deposits of account holders in federal credit unions and most state-chartered credit unions.

Other New York City congressmembers who signed the letter include House Democratic Caucus Chair Joe Crowley (D-Queens, Bronx), Adriano Espaillat (D-Manhattan, Bronx), Hakeem Jeffries (D-Brooklyn, Queens), Carolyn Maloney (D-Manhattan, Queens/Brooklyn), Gregory Meeks (D-Queens, Nassau), José Serrano (D-Bronx) and Nydia Velázquez (Brooklyn, Manhattan, Queens).  

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