SAN FRANCISCO–Some taxi-driving credit union members here said they have received letters from their CU requesting full repayment of their medallion loans. At least a dozen of the letters have been sent, according to KPIX, the local CBS affiliate.
“They send me the letter, you know? I cannot sleep. I’m nervous, all week, nervous,” cab driver Tien Bui was quoted as saying, adding he owes $176,000 on his loan to San Francisco FCU. “I cannot afford” to repay it in full, he said.
The drivers who received the letters and who spoke with KPIX said they were also surprised to learn the loans had changed hands.
San Francisco FCU said it bundled the loans and has since sold participations to other credit unions. It is not alone; CUs in other markets, especially New York, sold participations in their medallion loans as well before those credit unions were conserved and merged into others by NCUA.
‘Raises More Questions’
San Francisco Federal Credit Union confirmed to KPIX 5 it had sold the participations, but by law it is not permitted say how many and to whom.
“The action by the credit union raises more questions — and the stakes — for drivers who were already feeling endangered,” KPIX said.
“Yeah, I want to keep the medallion. I want a job, you know?” Tien told KPIX. “I have a family. I take care of family. If they take it back, I don’t have a job [or] work.”
As CUToday.info reported here, San Francisco FCU has filed suit against the city of San Francisco seeking $28-million in damages it alleges have been caused by ride sharing services on the value of taxi medallions.
In its suit San Francisco Federal alleges the plunge in taxi medallion values has been caused by the ride sharing services and left it with numerous troubled loans. In addition, SFFCU said at the invitation of the city of San Francisco it entered into a lending partnership for an expanded taxi medallion program.