Loan delinquencies for New York City taxi medallions are on the rise for one lender, as ride-hailing services like Uber continue to eat into taxis' business.
Crain's New York Business reported a letter from Melrose Credit Union's lawyer claims its medallion loan delinquencies have jumped from $32,000 at the beginning of 2014 to $206 million in July of this year. This comes as the average selling price of a medallion has fallen as taxi competitors proliferate.
"Given the dramatic acceleration in delinquencies and troubled-debt restructurings, widespread foreclosures are a near certainty," Crain's reported that Melrose's attorney wrote to a de Blasio administration counselor.
According to the report, the letter was meant to persuade City Hall on a legal point concerning the categorization of Uber and other services, which could decide if they are allowed to continue. Melrose is one of four lenders, according to Crain's, suing New York City to force Uber to stop responding to electronic hails.