Capital One Closer to Selling Foreclosed Chicago Taxi Medallions

Capital One’s request for a declaratory judgment allowing it to foreclose on millions of dollars of defaulted loans secured by Chicago taxi medallions and sell them may proceed, a federal district court in Illinois said Nov. 19.

A medallion is license issued by Chicago allowing the holder to operate taxi cabs in the city. The medallion holders here borrowed against their medallions from another lender.

After Capital One acquired the loans, the holders defaulted. Because they contested the defaults, however, Capital One Equipment Finance Corp. was required by Chicago’s taxi rules to get a court order to transfer the medallions. ...