Newsroom
September 11, 2015
Taxi medallion values take a hit in dismissal of NYC lawsuit
New York City won a legal battle Wednesday defeating three lawsuits, one from local credit unions, regarding the legality of Uber and other app companies to operate in the city, dealing a blow to taxi medallion lenders.
Melrose Credit Union, the largest lender to taxi medallion owners, sued New York City with three other credit unions, including NAFCU-member LOMTO Federal Credit Union, arguing that apps like Uber, which uses black cars, violate the yellow cabs' exclusive right under state law to pick up street hails. The credit unions also said these app companies caused the value of taxi medallions to drop up to 40 percent, amNewYork reported.
New York City argued that rides arranged using electronic apps are prearranged trips, not hails. Todd Higgins, attorney for Melrose CU and the other plaintiffs, was quoted in the article saying they would appeal the decision. "We respectfully disagree with today's decision by the Supreme Court upholding, as a matter of ‘administrative' discretion, the [Taxi and Limousine Commission's] blatantly arbitrary and caprious determination, in direct violation of New York State law," he was quoted saying.
Last year, NCUA released Letter to Credit Unions 14-CU-06, for credit unions that were contemplating or already involved in taxi medallion lending. The letter noted that credit unions involved in such lending "can be exposed to increased risk." It also published an FAQ in May.
Taxi medallions are metallic symbols attached to the hoods of taxicabs that are licensed to pick up passengers on the street in the city. The number of taxi medallions is limited, so the medallions can be costly.
Melrose Credit Union, the largest lender to taxi medallion owners, sued New York City with three other credit unions, including NAFCU-member LOMTO Federal Credit Union, arguing that apps like Uber, which uses black cars, violate the yellow cabs' exclusive right under state law to pick up street hails. The credit unions also said these app companies caused the value of taxi medallions to drop up to 40 percent, amNewYork reported.
New York City argued that rides arranged using electronic apps are prearranged trips, not hails. Todd Higgins, attorney for Melrose CU and the other plaintiffs, was quoted in the article saying they would appeal the decision. "We respectfully disagree with today's decision by the Supreme Court upholding, as a matter of ‘administrative' discretion, the [Taxi and Limousine Commission's] blatantly arbitrary and caprious determination, in direct violation of New York State law," he was quoted saying.
Last year, NCUA released Letter to Credit Unions 14-CU-06, for credit unions that were contemplating or already involved in taxi medallion lending. The letter noted that credit unions involved in such lending "can be exposed to increased risk." It also published an FAQ in May.
Taxi medallions are metallic symbols attached to the hoods of taxicabs that are licensed to pick up passengers on the street in the city. The number of taxi medallions is limited, so the medallions can be costly.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
Get daily updates.
Subscribe to NAFCU today.