Page 24 - ARUBA TODAY

Monday 17 July 2017 BUSINESS
A24

Uber, Lyft take down not just cab drivers, but also lenders

By KAREN MATTHEWS the equity of the medal-
Associated Press lion,” he said. Other me-
NEW YORK (AP) — Ride- dallion owners tell similar
hailing apps such as Uber stories. Constant Granvil
and Lyft have been so dis- bought his medallion for
ruptive to New York City’s $102,000 in 1987 and said
taxi industry, they are caus- he now owes more than
ing lenders to fail. $300,000 to his lender. He
Three New York-based could have sold the me-
credit unions that special- dallion for two or three
ized in loaning money times that a few years ago,
against taxi cab medal- “but I said no, I’m not go-
lions, the hard-to-get li- ing to sell it,” said Granvil,
censes that allow the city’s who is 76. “And then I got
traditional cab fleet to op- caught.”
erate, have been placed The value of Granvil’s me-
into conservatorship as the dallion is hard to pinpoint
value of those medallions because 2017 sale pric-
has plummeted. es have varied from the
Just three years ago, cab $200,000s to the $500,000s
owners and investors were depending on whether
paying as much as $1.3 mil- lenders are willing to fi-
lion for a medallion. Now nance the purchase.
they are worth less than In this June 26, 2017 photo, taxi driver and taxi medallion owner Marcelino Hervias poses for Meanwhile, Granvil, who
half that, and some medal- photos with his taxicab on New York’s Upper West Side. no longer drives because
lion owners owe more on Associated Press of poor health and uses a
their loans than the medal- vatorship by the National Instead, the 58-year-old more on their medallion broker to hire a driver, said
lions are worth. Credit Union Administration said he owes $541,000 and loans than they originally he is facing threats from
“You’ve got borrowers who on June 26 “because of is driving 12 to 16 hours a paid for the medallions be- the lender, Melrose Credit
are under water. This is just unsafe and unsound prac- day to make ends meet. cause they used their eq- Union, to foreclose on not
like the subprime loan cri- tices.” “I celebrate my kids’ birth- uity in the medallion for a just his medallion, but also
sis,” said Keith Leggett, a New York City has the na- days over the phone. home, a child’s education his house. “How am I going
credit union analyst and tion’s largest taxi industry, Why?” Hervias said. or other expenses. to live?” he said. “And now
former senior economist at with more than 13,000 me- While some medallions are Hervias said he borrowed Melrose wants to take my
the American Bankers As- dallions. Marcelino Her- held by large owners with against his medallion to house?”
sociation. LOMTO Federal vias bought his medallion fleets, owning a single me- pay for medical care for his The New York State Depart-
Credit Union, which was in 1990 for about $120,000 dallion was long seen as a mother, a new car and a ment of Financial Services
founded by taxi drivers in and thought its value ticket to the middle class visit to his homeland. took possession of Melrose
1936 for mutual assistance, would hit $2 million by the for immigrants like Hervias, “Every time we want to go Credit Union in February
was placed into conser- time he was ready to retire. who is from Peru. on vacation or do some- and appointed the NCUA
Many of them now owe thing, where do we go? To as conservator.q

Bone fragment scare forces

Sabrett hot dog recall

NEW YORK (AP) — The York City-based Marathon 8854” inside the USDA mark
maker of Sabrett hot dogs Enterprises Inc. on Satur- of inspection.
is recalling more than 7 day. The agency says the re-
million pounds of hot dogs The recall affects beef and called products have been
because they may contain pork hot dogs and sau- blamed for one minor oral
bone fragments. sages produced on various injury.
The U.S. Department of dates between March 17 Consumers who purchased
Agriculture’s Food Safety and July 4. the hot dogs are urged to
and Inspection Service The food-safety agency throw them away or return
announced the recall of says the products subject them to the store where
products made by New to recall are stamped “EST. they bought them.q