CHICAGO–Dozens of Chicago cab drivers took to the streets outside the offices of an attorney who represents a credit union here as part of a protest related to the foreclosures on taxi medallion loans, the values for which have plummeted as ride sharing services have emerged.
The cab drivers held their protest outside the West Loop offices of Frank Andreou, an attorney who represents New York City-based LOMTO Federal Credit Union, which primarily makes taxi medallion loans, according to the Chicago Tribune.
The $237-million LOMTO was placed into conservatorship in June by NCUA, as CUToday.info reported here.
“The taxi owner-operators carried signs, chanted and asked that ‘aggressive’ foreclosure tactics cease until the city of Chicago eases regulations and the industry stabilizes,” the Tribune reported.
A letter to Andreou from Cab Drivers United, a union representing Chicago taxi drivers, was also delivered.
"Over the past year LOMTO has filed more foreclosure lawsuits against Chicago taxi medallion owners than any other lender," the letter claimed. It also asked for a moratorium on foreclosure lawsuits to give drivers time to modify their loans, the Tribune said.
According to the union, approximately 900 taxi medallion owners have received a medallion foreclosure notice from lenders in the past three years. In Chicago, 6,999 medallions have been issued by the city. The Tribune noted that medallions that were selling for approximately $300,000 several years ago, are now selling for approximately $50,000. The average income per medallion has declined 39% since 2014, according to union-supplied data, the Tribune said.
Several taxi drivers interviewed by the Tribune indicated they were no longer making payments on their medallion loans, but continued to drive their cabs. The drivers said they are seeking loan modifications, not repossessions.