The Uber effect? Boston’s cabbies are defaulting on their medallion loans
The situation for Boston cabbies is getting worse as ride-sharing services like Uber and Lyft increase in popularity.
The situation for Boston cabbies is getting worse as ride-sharing services like Uber and Lyft increase in popularity.
Banks are starting to foreclose on delinquent loans for taxi medallions, reports CommonWealthmagazine.
The last four medallions sold in Boston went through auction after owners were unable to earn enough to pay their loan, according to data from the Hackney Carriage Unit of the Boston Police Department.
“I’m surprised there’s not more,’’ Donna Blythe-Shaw, a spokeswoman for the Boston Taxi Drivers Association told Commonwealth. “They’re all drowning in these mortgages on these valueless medallions. They’re drowning and no one cares.’’
Blyth-Shaw expects more foreclosure sales. A medallion worth $666,547 on the open market last year was auctioned off at foreclosure for $310,000 in August.
Read the full story in CommonWealth.
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