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After Credit Agency Sells Off Cab Loans, State AG Sues City

Posted 2/24/20

Just 24 hours after the National Credit Union Administration sold off hundreds of millions of dollars in distressed taxi-medallion loans over the protest of the New York Taxi Worker Alliance, New York State Attorney General Letitia James threw the group a lifeline with an announcement that she would sue the city for $810 million.

Historically, the city sold the taxi medallions to drivers, which gave them an exclusive franchise to pick-up fares on city streets. But over the last several years, as ride-sharing apps like Lyft and Uber proliferated, the value of the medallions collapsed, forcing drivers into bankruptcy and foreclosure.

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