Metro

De Blasio calls for probe of taxi lenders following predatory loan report

Mayor Bill de Blasio launched a probe Monday of the city taxi market following a damning report that claimed industry leaders duped drivers with predatory loans and artificially inflated the costs of cab medallions for years– leading to their eventual collapse.

“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,” the mayor said in a statement.

The 45-day review will identify and penalize brokers who have taken advantage of buyers and misled city authorities, the mayor said.

The New York Times reported Sunday that brokers shopped exploitative loans to cash-strapped, often immigrant drivers who were crushed by hefty monthly fees.

De Blasio said the review will set new rules to prevent future abuses.

“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,” he said.

The deep decrease in medallion values from a high of $1.3 million in 2013 to just $250,000 last year is also due to the flood of Uber and Lyft cars into the market.