De Blasio Orders Investigation Into 'Predatory Practices' By Taxi Medallion Brokers
NEW YORK (CBSNewYork) – Mayor Bill de Blasio has ordered an investigation into alleged predatory practices by taxi medallion brokers.
"The 45-day review will identify and penalize brokers who have taken advantage of buyers and misled City authorities. The review will set down strict new rules that prevent broker practices that hurt drivers," the mayor said in a statement Monday night. "It's unacceptable to prey on hardworking New Yorkers trying to support their families and we'll do all that we can to put an end to it."
Today I ordered a joint investigation by the Taxi and Limousine Commission, Department of Finance and Department of Consumer Affairs into predatory practices by brokers in the taxi industry.
— Mayor Eric Adams (@NYCMayor) May 21, 2019
De Blasio's announcement follows a New York Times report on what it called "reckless loans to low-income buyers."
Medallion prices peaked in 2014, rising to more than $1 million dollars. They now sell for less than $200,000.
Our office is beginning an inquiry into the disturbing reports regarding the lending and business practices that may have created the taxi medallion crisis in New York City.
— NY AG James (@NewYorkStateAG) May 20, 2019
These allegations are serious and must be thoroughly scrutinized.
New York State Attorney General Letitia James said her office is also launching an investigation.