NEW YORK–Three credit unions, along with several other plaintiffs, have lost a ruling in a federal appeals court that upholds the right of New York City to treat taxicabs and rideshare companies differently.
As CUToday.info reported, the three credit unions–Progressive Credit Union, Melrose CU and LOMTO Credit Union–had brought the suit arguing the city had violated Equal Protection Clause of the Constitution and allowed the ridesharing services to proliferate and, as a result, driven down the value of the taxi medallions on which the credit unions had made loans on which they have seen significant losses. The CUs lost an earlier ruling in a federal court before appealing the decision.
The court expressed some sympathy for the situation, saying it recognizes that the plaintiffs have “suffered a decrease” in medallion values, but that doesn’t mean it’s a violation of the Due Process Clause.
NCUA is currently operating LOMTO and Melrose credit unions under conservatorship.