NEW YORK–Just two months after one group claimed borrowers with outstanding taxi medallion loans at credit unions were being driven to the point of suicide, one person has taken his own life.
The body of Yu Mein “Kenny” Chow was found in the East River near the Brooklyn Bridge after he apparently committed suicide. A report on Chow’s death was described by the New York Post as having been “pushed to the brink” by financial hardships. The man was at least the second with a loan through a credit union to have killed themselves.
Chow, 56, took out a $700,000 loan in 2011 from Melrose Credit Union to purchase a New York taxi medallion
“Chow bought the medallion when rates were at an all-time high, but he quickly found himself struggling to make payments as the rise of ride-sharing services drastically transformed the industry’s landscape in the city,” the Post reported.
The Post said it obtained documents showing that when Chow refinanced the loan in 2016, in addition to the medallion, he also had to put up everything else he owned as collateral, including his home.
Drivers At Risk?
The Post quoted one unnamed source as saying “Melrose Credit Union is looking out for itself while putting these drivers at great risk.”
Melrose CU was placed into conservatorship by NCUA in 2017 due to losses related to taxi medallion loans.
Melrose Credit Union was taken over by the government last year and placed in a conservatorship under the National Credit Union Administration due to “unsafe and unsound” practices.
In March, Nicanor Ochisor, who also had an outstanding loan from Melrose Credit Union, also committed suicide. According to the Post, at least five cab drivers, including Chow, have committed suicide since December 2017, “with at least four citing dire straits plaguing the industry.”