She’s a 64-Year-Old Taxi Driver Drowning in Medallion Debt—And She’s Fighting Back – Dorothy LeConte is part of a movement of taxi drivers demanding that the city of New York relieve their financial anguish.

NEW YORK CITY—Outside the gated entrance to City Hall, a dozen yellow taxi drivers huddle under the canopy of a tent to take shelter from the pelting rain. They sit alongside a line of their sunflower-yellow parked cars, next to a sidewalk makeshift memorial and protest shrine with a backdrop of signs that read: Respect the Drivers, No More Suicides; No More Bankruptcies, Debt Forgiveness Now! The rain has washed away the chalk spelling out the names of the deceased drivers etched against the cold pavement. The wicks on nine tall red candles are wet. On the previous rainless nights they burned bright, illuminating like a soundless incantation the names of nine taxi drivers who have committed suicide: Danilo Corporan Castillo, Alfredo Perez, Douglas Schifter, Nicanor Ochisor, Yu Mein Kenny Chow, Abdul Saleh, Fausto Luna, Roy Kim, and Driver Brother (unnamed to honor the wishes of the family that survived him). They were lost to the anguish of crushing debts and dissipated earnings.

Dorothy LeConte, 64, wasn’t there that October 4night, but she feels the anguish of owing a medallion debt of $558,000 with monthly payments of $2,000. “Sometimes, I think about suicide,” she tells me one sunny Saturday afternoon as we sat in foldable chairs beside the protest shrine. “And then, when I come back, I think about my children, and I turn around and say, ‘Dorothy, don’t.’” She reaches for extreme examples of horrible incidents a person can endure to convey the deflated morale of drivers. “This is worse than if a man left me pregnant in the street… What the city did to us, and they don't care.

LeConte’s predicament is far from unique among thousands of driver-owners of yellow taxis who the city has left in a lurch as they scramble to piece together enough earnings to payoff insurmountable debts.

Yellow taxi driver-owners and their union, the New York Taxi Workers Alliance (NYTWA), representing approximately 21,000 for-hire and yellow cab drivers, have set up a 24/7 protest encampment. They are eyeing October 31, the deadline for when Mayor Bill de Blasio and City Council must sign off on a budget modification, providing an opening for drivers to attain debt relief on their terms, not those of the banks. (Disclosure: This author worked for Mayor Bill de Blasio’s Democracy NYC Initiative as a communications director from December 2020 to January 2021.) Survey estimates put the median yellow taxi driver-owner debts at $500,000, according to a January 2020 report published by the Taxi Medallion Task Force.

Individual driver-owners account for about 40 percent of the city’s 13,587 yellow cabs. These workers, mainly from countries like Bangladesh, Pakistan, Haiti and Ghana, purchased medallions from the city in order to operate a taxicab and pick up street hails in parts of Manhattan. The medallion originated in 1937 as a means to control the number of cabs on city streets. For nearly a century, their values were modest, but then a speculative bubble spiked their values to stratospheric heights, reaching above a vertiginous $1 million per medallion in 2014, plummeting to $100,000 in 2019 after the bubble burst, and hovering at approximately $100,000 today. Banks and the city pushed exploitative loan terms with inflated prices to immigrant drivers even as they knew the value of medallions was on a downward spiral.

After years of protest against predatory lenders who, abetted by city agencies, saddled immigrant driver-owners with insurmountable debts, Mayor de Blasio pledged in March to allocate $65 million. Under the mayor’s plan, lenders receive a $20,000 grant to go towards a down payment to restructure the debts of driver-owners. It also includes $9,000 for yellow taxi drivers to use for monthly debt payments. With the pressure mounting on Mayor Bill de Blasio, the union held a press conference on October 13 to announce the support of over 50 elected officials backing its debt relief proposal. Then, on Friday of that week, dozens of yellow taxi drivers snarled traffic on the Brooklyn Bridge in protest, demanding debt forgiveness. On Monday, the union announced plans to begin a hunger strike.

“First of all, the $65 million, just the $20,000 grant won’t even cover that many people,” according to Bhairavi Desai, Executive Director of the NYTWA. Desai estimates there are between four to six thousand driver-owners who drive for a living and those who may be retired.

“If you go back to the record six months ago, they basically said everyone's going to get $20,000 as a cash down payment to restructure the debt and then $9,000 to help you pay for your mortgage for up to six months,” she adds. “But now that the rules are out, the rules make it impossible for anybody to access that $9,000 because there's a hardship requirement. If you’re out driving, you're not going to be considered in hardship, no matter how much you're struggling.”

The NYTWA has vetted a different proposal with the city’s comptroller’s office that is backed by New York City’s entire Congressional delegation in addition to state and local elected officials, as well as academic experts on banking and finance. That counter proposal calls for a debt restructuring plan of $90 million over 30 years, with the city providing a guarantee in the case of default and setting a limit of medallion debt loads to $145,000 with monthly payments capped at $800. Chief benefits of the NYTWA proposal would include more driver-owners and lower monthly payments to a manageable amount. The program, unlike the city’s proposal, would include driver-owners who are in foreclosure or undergoing bankruptcy proceedings, allowing drivers to negotiate favorable terms with lenders because the city would guarantee the restructured loans.

The city says that more than 1,000 people have signed up for its proposal. “It literally just means that people are calling them up to make an appointment,” says Desai. Asked to clarify what signing up for city’s proposal means, a spokesperson for the city Taxi and Limousine Commission (TLC) responded that “1,000 medallion owners have applied to the program.” The spokesperson also said the city is working with a “dozen lenders.”

New York Legal Assistance Group attorney Randal Wilhite characterized as “patently false” the city’s claims of how many people have signed up for the debt relief program. (For speaking out, Wilhite was suspended from NYLAG and prevented from testifying at a TLC hearing.)

One person who won’t be taking city’s offer as it stands is Dorothy LeConte. When she started driving a yellow taxi in 1987, she wasn’t venturing entirely into the unknown. Word on the street was upbeat about the financial possibilities owning a medallion conferred on women specifically, and immigrants more generally. The evidence of financial independence was self-evident. In those days, LeConte could walk up to a driver who’d happily report on favorable remuneration and confirm a medallion was truly all that it was cracked up to be, a lifelong investment with good returns. So, she did just that, striking up a conversation with a woman sitting in her cab in the shade on Lexington Avenue.

Her years working housing keeping at the Waldorf Astoria ended with the promise of one day being the driver-owner of a medallion. At first, she leased a car. Then, LeConte, originally from the island nation of Haiti, drew on the time-honored tradition of mutual aid among the Black diaspora, called sou-sou, or an informal savings club, to pool together a pot of cash to purchase a medallion. People in a sou-sou contribute money to a collective fund that pays out a lump sum each month to a participant based on their number in a monthlong cycle, which can average from 18 months or less based on the payout amount for each member. In 1989, she took the $17,000 payout to put down as a deposit on a medallion costing $140,000.

A single mom raising two Black boys, LeConte saw the taxi industry and her possession of a medallion as a reliable way to earn enough money to keep her children off the streets and in school.

“I’m raising two Black kids,” she says. “I’m out from four o’clock in the morning, and I’m coming home the next morning at three o’clock. I don’t want my sons to be in the street. I decided to put them in a boarding school. This is the American dream.”

But it was more than a mere pursuit of an elusive American dream. She paid $43,000 a year to a boarding school in Pennsylvania for the assurance that it would provide safety.

“My 14 year old didn’t have to hang out in the street and get killed by the police, or by the gang, or involved in drugs, saving the Rikers Island money,” she adds. “That’s what I use my money for.”

To provide for her children, she put in grueling hours, pushing her body to the limit. The pain of sitting in cab with no end in sight hobbles the body and curves the bones, but the spirit is more dogged.

The early signs of the taxi crisis began during former Mayor Rudy Giuliani’s tenure at City Hall. Giuliani bragged about breaking the 1998 strike among drivers organized by the NYTWA and violated their constitutional rights. When LeConte got her first taxicab, she paid $9,000. Under Giuliani, yellow cabs had to change every five years as part of his efforts to give a Hollywood facelift to New York City and increase regulations on immigrant drivers.

To drive a cab today, “you need $45,000 to $50,000. [If] you don't have the money, you got to [borrow] against the medallion,” says LeConte. That’s excluding medallion loan debt payments. To become a driver-owner was increasingly cost prohibitive. Last year, 4,500 taxis needed to be replaced after seven years on the road at a cost of $135 million, according to Crain’s New York.

Despite these financial hardships, yellow cab drivers continued to motor down New York City streets, taking pride in serving the public. LeConte runs through the times she’s come to the aid of the city’s residents and visitors, from September 11 to the 2003 blackout. “When I say we build the city, we do.”

She says yellow taxis are peripatetic ambassadors to countless tourists on their first visits to New York.

“People come for the first time to New York. They're so happy to grab a camera,” she says, and take a photo of a yellow taxi. “I am in the movies.”

“I'm always there. In everything, I help the city.”

According to LeConte, this includes intervention in harrowing domestic violence incidents.

“Another time, another woman, a man was beating her up. I was right in the middle of the street. I just rolled down the window. I said, ‘Jump in.’ She jumped in the cab, locked the door, and I flew with her.”

LeConte weathered ups and downs in the industry, but she said nothing prepared her for the arrival of Uber and Lyft, inundating New York City streets. Her brother, with a job in the technology sector, saw the writing on the wall and warned her in 2015. But she refused to heed his warnings.

“This is a New York City franchise. New York City will never allow this medallion to go all the way down,” she reasoned with her brother.

City data showed a 10 percent drop in revenue per yellow cab after Uber’s debut in 2011, with yellow taxi ridership in shambles. Medallion values held steady for a few more years, but the industry was soon ravaged by the combined forces of the city allowing banks and hedge funds to aggressively push predatory loans. Banks targeted people who they knew couldn’t service the loans, according to a New York Times investigation. They took advantage of immigrants whose first language wasn’t English to sign turgid contract terms they could, at best, only puzzle through. And even as the city knew there was trouble in the medallion market, it continued to inflate the value. Experts deemed the speculative bubble largest since the housing crash of 2007.

“I don’t think I could concoct a more predatory scheme if I tried,” Roger Bertling, the senior instructor at Harvard Law School’s clinic on predatory lending and consumer protection, told The New York Times. “This was modern-day indentured servitude.”

Drive-owners of yellow taxis are now trapped in Sisyphean ordeal, pushing a proverbial boulder up a mountaintop only to see it come crashing down. seemingly until the end of time, as many drivers like LeConte are in their 60s.

“We estimate between 4,000 to 6,000 thousand have underwater loans,” says Desai from the NYTWA.

LeConte describes going to her mailbox during the pre-Uber years of the early 2000s and finding five flyers promoting loans or refinance offers. “You open the taxi news, and you find people advertising” to borrow against the equity in the medallion, she explains. “Some people borrowed against it.”

“I did not expect what happened here to me today, and to us. The city will be responsible, because I know a government is there to protect the people,” she says. "I don’t think the government is there to sell us out.”

Without the city’s protection, the banks and tech companies have had free rein to extract the last cent from workers. Because the medallion after 2015 can no longer serve as collateral, she says, “you will be the collateral. If they can’t find anything on you, they’ll probably take you to a barber shop, they’ll shave your hair. If you have long hair, they’ll sell your hair for fake hair in the street. Whatever you have, they’ll take it away from you.”

She draws parallels to the financial ruin facing yellow taxi drivers today to the 1921 Tulsa Race Massacre. In May 1921, a white mob went on a rampage in the economically thriving, predominantly Black Greenwood neighborhood of Tulsa, Oklahoma. The mob was incited by a false story of a Black man assaulting a white girl, fueling the already potent adrenaline of white supremacy through the veins of an armed white mob of looters and arsonists. All told, hundreds of African Americans residents were savagely killed, their 1,250 homes and assortment of businesses annihilated by racial terrorism. According to a 2001 state commission report, property loss claims reached about $27 million in today’s dollars.

“You remember that story?” she asks me. ”The government burned its Black people down, taking their wealth, killing them. They lost everything.”

“The whole world is looking, but they [are] using the technology,” she adds, referencing the city allowing Uber to break the law and flood New York's streets with app-based drivers.

The feminist intellectual Jacqueline Rose has attributed the unseen violence of capitalism, or what Rosa Luxemburg once called the “quiet conditions,” to the “skill with which capital cloaks its crimes.”

The fire of righteous indignation that blazes from within LeConte refuses to be tamped down, but she has also reconciled herself to the realities of age and the unseen casualties of the spirit.

“I need the day off. I need to stay home. I'm 64-years-old. When I go to my doctor, I have pains in my fingers, sprain in my knee. I can't get up, pain in my back.”

The toll of driving a cab all these years has finally begun to manifest in her body. But it’s also overtaken her mind.

The anguish of the banks coming for her to collect $558,000 has deprived her of the balm of a good night’s sleep. “I never get a good six hours, eight hours of sleep. Never. Because I’m dreaming. What is going to happen to me? What happens with my dignity?”

About her plight, she says, “it’s not because I’m sick. It’s not because of an accident that I’m paralyzed. [It’s] because of the government that I trust. We ask Mayor de Blasio only to guarantee the loan.”

This content originally appeared on In These Times and was authored by Luis Feliz Leon.

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