Mayor Bill de Blasio has announced that 90 loan restructuring deals have been approved under the City’s $65 million Medallion Relief Program (MRP), delivering $14 million in debt forgiveness to individual medallion owners. The program continues to gather pace: in the last week alone, 33 drivers have received $3.6 million in relief.
More than 1,000 medallion owners have completed intake appointments to begin the restructuring process. In all, the program is anticipated to achieve as much as $500 M in total debt forgiveness.
“As the Medallion Relief Program continues to build momentum, more and more medallion owners are finally getting the fair deal and fresh start they deserve,” said Mayor Bill de Blasio. “This program is delivering economic justice for the hardworking New Yorkers who need it most, and I look forward to celebrating even more successes in the weeks and months to come.”
“With nearly 100 approved deals, the MRP is working to provide immediate debt relief to our patient and deserving individual Medallion Owners,” said TLC Commissioner and Chair Aloysee Heredia Jarmoszu
“Hundreds of taxicab medallion owners have already benefited from getting free legal assistance and financial counseling to help lower and even eliminate their debt,” said DCWP Commissioner Peter A. Hatch. “We urge any drivers/owners who are struggling with medallion-related debt to use these financial resources and schedule an appointment at the Driver Resource Center. We are looking forward to helping many more people manage their debt and improve their financial health.”
The City of New York will provide $65 million in grants to economically distressed individual medallion owners. This includes $20,000 as a down payment to restructure loan principals and set lower monthly payments, as well as up to $9,000 for monthly debt relief payments.
Many medallion owners will have over $200,000 in debt forgiven, and loan payments reduced to about $1,500 or less per month. Some owners will achieve total debt erasure through settlements.