Taxi Industry Update RE: SFFCU 6.15.20
Dear Taxi Industry,
As you are likely aware, the SFMTA requested that the San Francisco Federal Credit Union extend its two-month taxi medallion loan forbearance program for an additional period of 90-days (attached). We are deeply disappointed that the Credit Union, so far, has refused to continue its loan forbearance to mitigate the drastic impact of the COVID-19 pandemic on driver income. Purchased medallion holders have stuck by their loans and continued to make payments to the Credit Union through all the difficulties of the past years. Supervisors Preston and Ronen have introduced a resolution urging the Credit Union to extend the medallion loan forbearance program. There is nothing stopping the Credit Union from taking this minimal step to help medallion holders during this difficult time.
The contract between the SFMTA and the Credit Union assigns risk to the Credit Union if the market price of medallions drops. Buying back medallions amounts to a bailout of the Credit Union. SFMTA is currently in mediation with the Credit Union to find a fair solution that will support purchased medallion holders and not bail out the Credit Union for market risk it chose to make. The mediation is supervised by a Superior Court judge. While State law and the mediation rules prohibit us from describing what's going on in the mediation, the SFMTA is doing all it can to support the industry, drivers, and medallion holders. The SFMTA is gratified that the Credit Union offered publicly, in its June 8 letter to the industry, to contribute to a permanent loan forgiveness fund. We intend to work with the Credit Union to develop this proposal
Thank you for your service to the community, particularly during these very challenging times.
Taxis and Accessible Services Division