Attorney General James Releases Top 10 Consumer Complaints of 2024

NEW YORK – New York Attorney General Letitia James today marked National Consumer Protection Week by releasing a list of the top 10 consumer complaints received by the Office of the Attorney General (OAG) in 2024. The top complaints include issues such as price gouging of essential goods and services, housing issues, mortgage fraud, and violations of online privacy. Attorney General James also provided a variety of tips on how consumers can avoid common scams and protect their hard-earned money.

“Every day, my office fights back against a wide range of fraudulent, deceptive, and illegal practices, protecting New Yorkers from price gouging, deed theft, false advertising, and more,” said Attorney General James. “It is more important than ever that consumers and small businesses in New York know that my office is on their side and always looking out for their wallets. I encourage everyone to stay vigilant, follow our tips, and contact my office with information about scams and violations of consumer protection laws.”

The following are the top 10 most common types of consumer complaints received by OAG in 2024 by category:

 

Attorney General James urges New York consumers who have been victims of deceptive or fraudulent practices to file a consumer complaint online. To help New Yorkers protect themselves against common sources of fraud, Attorney General James released the following tips to help consumers avoid fraudulent practices and report them to OAG:

Retail Sales Online and In-Person

Price gouging

• New York’s price gouging statute prevents businesses from taking advantage of consumers by selling essential goods or services at an excessively higher price during market disruptions resulting from emergencies.
• The OAG has seen an increase in complaints about price gouging of eggs and poultry amid a national bird flu outbreak. The bird flu has affected poultry and dairy farms across the country, causing shortages and driving up prices. Attorney General James urges New Yorkers who see significantly increased prices on eggs or poultry to report the issue to her office. When reporting price gouging to OAG, consumers should:
  • Report the specific increased prices, dates, and places that they saw the increased prices; and,
  • Provide copies of their sales receipts and photos of the advertised prices, if available.
• Price gouging violations can carry penalties of up to $25,000 per violation. New Yorkers should report potential concerns about price gouging to OAG by filing a complaint online or calling (800) 771-7755.

Illegal credit card fees 

• Consumers have increasingly complained about restaurants and other businesses charging extra for using a credit card, often without disclosing that is the case. New York law allows merchants to offer discounts for payment with cash, while charging consumers paying with a credit card a higher price only if they obey the following rules:
  • Merchants must either solely display the higher credit card price for the products or services they sell or list both the credit card price and the lower cash price for the items.
  • Merchants cannot simply post that they are adding a surcharge or additional fee, or that there will be a percentage added to the bill.
  • Merchants cannot charge customers more in surcharges than what the business is charged by the credit card processing companies.

Landlord/Tenant Issues

• Your landlord must return your security deposit within 14 days of you moving out. If your landlord takes any money out of the security deposit for damages, they must provide an itemized receipt describing the damage and its cost. If your landlord does not give you this receipt within 14 days of moving out, then they must return your entire security deposit, whether there is damage or not.
• Landlords of buildings with six or more units must deposit a tenant’s security deposit into an interest-bearing account in a bank within the state that pays a prevailing rate. The landlord is required to provide notice to the tenant of the name and address of the bank where the security deposit is located. If you do not have this information or if your landlord is not placing your security deposit in an interest-bearing account, you can file a complaint with OAG by using the online Rent Security Complaint form.
• Tenants in a rent-stabilized apartment are entitled to one- or two-year renewal leases at their option and at percentage increases that are established each year by the Rent Guidelines Board. Tenants can find out if their apartment is rent stabilized by filling out this form on New York State Housing and Community Renewal’s (HCR) website and selecting “Apartment Rent History.” From the rent history, you should be able to determine if the rent went up in accordance with the rent stabilization guidelines. If it has not and you believe you are being overcharged on the rent, you can file an RA-89 form with HCR.
• Avoid signing back-dated documents from your landlord or the building management company, such as back-dated leases that were not offered to you in a timely way. Not only is signing a back-dated document inaccurate, it may also result in negative legal consequences down the road.
• If you are having trouble paying your rent, please contact your local Department of Social Services (DSS). Check DSS’ website to find their offices across the state. New York City residents can call 311 and ask about rental assistance programs. More resources are available on OAG’s website.

Automobile Fraud

• With the cost of new and used cars at an all-time high, many New Yorkers are opting to keep their leased vehicles and turning to end-of-lease buyouts. Consumers should take the following steps when thinking of buying their leased cars instead of turning them in:
  • Check the lease agreement for the buyout lease terms and ask for a full breakdown of the costs, including the residual value of the vehicle, buyout fees, and taxes.
  • With most lease buyouts, the residual value is non-negotiable, but you may be able to negotiate on all other fees that relate to the buyout.
  • When considering a buyout, it's typically best to do so at the end of the lease agreement. Ending a car lease early is usually more expensive and you'll avoid early buyout charges by waiting until the end.
  • Beware of hidden fees. Make sure that all fees are listed on the invoice. Be wary of “dealership,” “processing,” “market adjustment,” or any other added junk fees. Attorney General James has already investigated and penalized dealerships for imposing these illegal fees.
    • A dealership may not charge you more than the fees listed in the buyout section of the lease agreement. Usually this is just a single buyout fee of a few hundred dollars specified in your lease agreement, plus DMV registration and/or inspection fees, taxes, and a single $175 charge a dealer may make for handling registration for you. You may also be charged for financing if you arrange that through the dealership, as financing is a separate transaction from the vehicle.
  • Be cautious about dealership add-ons. A dealership is not allowed to force you to buy any add-on products as a condition of buying out your lease and can’t inflate add-on costs just because you’re buying out your leased vehicle.
  • Think carefully before transferring your car to a family member or another person in the process of buying out the car. Your lease sets a specific price for a buyout, but only if the person buying out the car is the person whose name is on the lease. You may be better off buying the car in your own name and then transferring the car and registration at the DMV to your family member later.
• Any consumers who experience deceptive or fraudulent lease buyout practices should file a consumer complaint online.
• New York’s Lemon Laws protect consumers who buy or lease new and used cars.
  • If your new car does not conform to the terms of the written warranty within the first 18,000 miles or two years from the date of delivery – whichever is earlier – and the manufacturer or its authorized dealer is unable to repair the car after a reasonable number of attempts, you may be entitled to a full refund or a comparable replacement car.
  • The Used Car Lemon Law requires dealers to give consumers a written warranty ranging from 30 to 90 days stating the dealer must repair, free of charge, any defect in covered parts. If the dealer is unable to repair the car after a reasonable number of attempts, the consumer is entitled to a full refund.
  • More information about New York’s Lemon Laws is available on OAG’s website. 

Internet Fraud

• The OAG has seen an increase in complaints related to online account takeovers. In an account takeover, scammers compromise your account and change passwords so that the rightful owner cannot access the account. Once bad actors gain access, they can steal personal information, read private messages, scam contacts, post publicly, fraudulently charge credit cards, and take other nefarious actions. Consumers should take the following steps to help protect themselves:
  • Use strong passwords: it is important to have a strong and unique password for each of your online accounts. The password does not need to be long, but it has to be complicated enough, utilizing a combination of letters, numbers, and special characters.
  • Use multifactor authentication: enable multifactor authentication when possible on your accounts. Multifactor authentication provides an extra level of security when signing into an account.
  • Enable notifications of account changes: this will alert the user to any changes such as password updates or login attempts, allowing the user to take prompt action if the changes were not authorized.
  • Use antivirus software: make sure your antivirus software is up to date with the latest virus definitions. Maintain a routine of running your antivirus software periodically to catch any malware, such as a keylogger, on your computer.
  • Check breached credentials databases: check websites, such as https://haveibeenpwned.com/, to monitor which accounts of yours have suffered a data breach incident. Knowing which accounts have been compromised can help you take corrective actions, such as changing your passwords, as soon as possible.

Credit and Banking Fraud         

• Given the prevalence of data breaches by major corporations, consumers should consider a credit freeze with the three major credit bureaus: Equifax; Experian; and TransUnion. A credit freeze lets you restrict access to your credit report, which makes it more difficult for someone to open a new account in your name. Credit freezes and unfreezes are free.
• Fraud alerts, which are also free, can be obtained for a year. When you place a fraud alert on your credit report, businesses are required to take reasonable steps to ensure that the person who is applying for credit in a particular name is indeed that person and not someone else.
  • You can place a credit freeze with Experian online or by calling (888) 397-3742.
  • You can place a credit freeze with Equifax online or by calling (888) 766-0008.
  • You can place a credit freeze with TransUnion online or by calling (800) 680-7289

Deed Theft and Mortgage Fraud 

• Deed theft occurs when a homeowner (or heir to a deceased homeowner) is deceived into transferring title to their property without realizing that they are giving up their ownership rights. Recent legislative changes advanced by Attorney General James make it easier for OAG to prosecute deed theft and for a homeowner to restore ownership of their deed after a criminal prosecution for deed theft. Additional changes protect families who inherit a home when the owner passes away without a will by prohibiting predatory investors from purchasing a share of the home without first providing heirs with an opportunity to match the terms of sale.
• If you believe you have been the victim of a deed theft or predatory forced sale of a family home, contact OAG or your local District Attorney.
  • OAG continues to see foreclosure lawsuits being filed on “zombie second mortgages,” which are old mortgages where the homeowner has heard nothing about the loan for many years. Under New York law, mortgage companies generally can only collect on the last six years of missed mortgage payments; seeking to collect beyond that may be illegal. Please contact the New York State Homeowner Protection Program (HOPP), which includes free legal services attorneys, by visiting their website or calling (855) HOME-456.
  • Homeowners who need a mortgage modification, or are looking to refinance their current mortgage, should work with a HUD-approved, nonprofit housing counselor to assess their options. Please contact the New York State Homeowner Protection Program (HOPP), which includes free HUD-approved housing counseling, by visiting HOPP’s website or calling (855) HOME-456. 

Immigration Service Provider Fraud and Immigration Scams

• Immigrant service providers help consumers by translating documents and providing other support with forms and applications. They can notarize documents, assist with typing or clerical services, and obtain documents required for the submission of immigration applications.
• New Yorkers should beware of scammers who pose as immigration service providers and make false promises of citizenship and residency. New York’s Immigrant Assistance Service Enforcement Act protects immigrants from fraud and requires immigration service providers to operate lawfully.
• Immigration service providers are not attorneys and cannot provide legal advice or representation. New York law requires service providers to follow certain rules — including posting signs explicitly stating they are not attorneys — to protect immigrants from scams and fraud.  Under New York law, immigration service providers cannot:
  • Provide legal advice;
  • Use the title of “attorney,” “notary public” (unless they are licensed by the state), “accredited representative,” “notario publico,” “notario,” “immigration specialist,” or “immigration consultant;”
  • Imply that he or she can obtain special favors with the US Department of Homeland Security or any other governmental entity;
  • Threaten to report a consumer to US Homeland Security or other authorities, or threaten to undermine a consumer’s immigration status;
  • Demand or retain fees for services not performed, or services to be performed in the future, or costs that have not been incurred; or
  • Advise, direct, or permit a consumer to provide a false statement on a government document or in a discussion with a government official.
• Immigration Service Providers are also required by law to use contracts that:
  • Must be in a language understood by the consumer;
  • Include an itemization of all services to be provided and fees to be charged; and
  • State, “You may cancel your contract at any time. You have three business days to cancel this contract without fee or penalty and get back any fees that you have already paid.”
• Only work with a licensed lawyer or an authorized immigration services provider, never sign blank applications or documents you do not understand, and do not pay by cash or by wire transfer.
• If you have been a victim of immigration fraud or received unauthorized legal advice on immigration matters, please contact the Attorney General’s Immigration Services Fraud Unit Hotline at (212) 416-6149 or file a complaint online.
• If you are in need of an attorney or accredited representative in an immigration matter, please contact either the New York State Bar Association online or at (800) 342-3661, or the American Immigration Lawyers Association online or at (202) 507-7600 for a referral.

Utilities, Internet, and Residential Phone Service: 

• New Yorkers recently saw considerable and sudden increases in their gas and electric bills. Any consumer who believes they received a high utility bill as a result of a billing error should report it to OAG by filing a complaint online or calling (800) 771-7755.
• If you have trouble paying your energy bill, contact the utility company. Resources are available for consumers who may need help paying their utility bill. Utilities companies offer programs and payment plans to help. In addition, the Home Energy Assistance Program (HEAP) helps low-income individuals pay the cost of heating their homes. Information on how to apply is available at https://otda.ny.gov/programs/heap/.
• Consumers looking for a new cell phone should keep the following tips in mind:
  • Advertisements should include the price of the good or service, or if there is a range of potential prices depending on features or versions of the good or service, the ad should include the range of potential prices or at least the minimum price “and up.”
  • If there is a monthly payment, the number of payments should be disclosed along with the amount of each payment, or the range of potential payment amounts.
  • If there is an offer for something “free,” “on us,” or at “no cost,” then any requirements or conditions for receiving that free good or service should be fully disclosed.

Home Improvement Frauds

• Greater demand for contractors may make it harder for you to find a reputable contractor to make badly needed repairs. Some contractors may overextend themselves and promise more than they can deliver. Natural disasters and major weather events often attract scam artists who try to take advantage of you and other consumers when you are most vulnerable. After a big weather event, be especially vigilant to avoid being victimized as you attempt to put your life back in order. Consumers should use the following tips to protect themselves:
• Be wary of anyone who shows up at your door unsolicited and offers to do home repairs.
• Non-local contractors may be difficult to track down if they perform work incorrectly or if you later have additional problems that you want them to fix.
• Use a contractor with a name, address, and contact number you can verify.
• Don’t fall prey to high-pressure tactics: A legitimate contractor won’t pressure you to sign a contract and hand over a deposit on the spot.
• Never give a contractor a cash deposit before you sign a contract.
• Always do your homework before you hire a contractor:
  • Ask for references and follow up by checking with them.
  • Ask the contractor for proof of insurance.
  • Check the Better Business Bureau website for complaints.
  • Search online for any evidence that the contractor is disreputable.
  • Home-improvement contractors must be licensed in New York City, Suffolk, Nassau, Westchester, Putnam, and Rockland counties, and the City of Buffalo. Before you hire a contractor, check to make sure the contractor is licensed or registered in your county. 

Difficulty Canceling Entertainment and Streaming Services

• If you have any type of video or digital streaming subscription service that renews automatically, you have a right to cancel the subscription service through a process that is simple and efficient. The company cannot make you listen to a stream of new offers before allowing you to cancel. The cancellation process must be at least as easy as the process for enrolling in the digital streaming subscription in the first place. If you signed up online, you must be allowed to cancel online as well.

Travel Refunds 

• A new federal rule went into effect in 2024 requiring US airlines to give passengers cash refunds if their flight is significantly delayed or canceled, even if the consumer does not explicitly ask for a refund. And the new rule requires airlines to give out refunds, not vouchers.
• Airlines must refund a passenger within seven business days if they bought a ticket on a credit card and within 20 calendar days if they used another form of payment. More information is available at the U.S. Department of Transportation’s website.

During 2024, Attorney General James took robust action to protect New York consumers from fraud, hold bad actors accountable, and ensure New York and federal consumer protection laws were upheld. In January, Attorney General James sued Citibank for failing to protect and reimburse its customers who were victims of fraud. In February, Attorney General James secured more than $650,000 from a debt collection law firm for filing frivolous lawsuits against vulnerable New York City tenants. In March, Attorney General James sued a large-scale predatory lending networkthat targeted small businesses, and then secured a $1.1 billion judgment against Yellowstone Capital for its role in the network. In April, Attorney General James secured more than $700,000 from Pathward Bank for unlawfully freezing customer accounts and illegally transferring money to debt collectors in violation of the Earned Income Protection Act. In September, Attorney General James secured more than $4.6 million for small businesses from Northern Leasing, which trapped businesses in overpriced leases for equipment. In December, Attorney General James secured $675,000 worth of baby formula for New Yorkers as a result of an investigation into price gouging of formula during the 2022 shortage.