GREENWICH, Conn.–Marblegate Asset Management, which recently purchased NCUA’s taxi medallion loan portfolio and which is the largest holder of medallion loans, said in response to the coronavirus outbreak it will offer a 30-day payment holiday for individual drivers who own their own medallions.
The company said in announcing the loan payment holiday the move will “help owner-drivers manage their medallion loans... and keep their cars on the road during this challenging period."
As CUToday.info reported here, the sale of the loan portfolio by NCUA to Marblegate was controversial among some, with one person even calling the company a “vulture hedge fund.”
NCUA officials said in explaining the sale of the 3,500-loan portfolio, which the agency came to own after the failure of a half-dozen credit unions, that Marblegate had pledged to work with borrowers. Marblegate paid $350 million for the portfolio.
A ‘Good Start,’ But…
Bhairavi Desai, executive director of the New York Taxi Workers Alliance, told Crain’s New York Business the Marblegate offer is a “good start,” but there is more to be done.
"There are barely enough fares right now to meet basic costs of living: groceries, utilities, Internet," Desai told Crain’s. "That's how dire it is."
According to Marblegate, since the February purchase of the loans it has met with drivers and the alliance and pledged to continue considering "measures to ease the burden on owner-drivers and their families during this emergency,” Crain’s reported.
Desai told Crain’s Marblegate should make sure the payments are deferred automatically and not rely on drivers calling. Desai also wants Marblegate to work with drivers on restructuring the loans.