Court Order Protects SNAP Benefits, Predatory Debt Servicer Settlement, Uber Lawsuit Over Costly Subscriptions, UPS Sued For Cheating Seasonal Workers, Protecting H1-B Visa Holders: NY AG

Court Order Protects SNAP Benefits, Predatory Debt Servicer Settlement, Uber Lawsuit Over Costly Subscriptions, UPS Sued For Cheating Seasonal Workers, Protecting H1-B Visa Holders: NY AG

Editor’s note: NYAG has also won a settlement for workers at Door Dash who were illegally cheated out of tips they earned and that customers were led to believe were being given directly to workers – instead they were deducted from their pay and pocketed by the company. 

 

Attorney General James Wins Court Order Protecting SNAP Benefits

NEW YORK – New York Attorney General Letitia James  released the following statement after a federal judge blocked the Trump administration’s efforts to penalize states with millions of dollars in fines related to their Supplemental Nutrition Assistance Program (SNAP) operations:

“Our most vulnerable residents rely on SNAP to put food on the table. Despite the federal government’s best efforts to make it more difficult for food assistance to reach those in need, today’s decision ensures New York’s SNAP program can continue running without interruption. I am grateful to the court for recognizing the urgency of this matter, especially this holiday season.”

On November 26, Attorney General James led a coalition of 21 attorneys general in suing the Trump administration after it attempted to cut off SNAP benefits for tens of thousands of lawful permanent residents. On December 10, the administration reversed itself and issued new guidance, confirming that lawful permanent residents – including former refugees and asylees – remain eligible for SNAP benefits. Despite that reversal, the administration continued to threaten states with millions of dollars in fines, claiming that states had missed a required “grace period” for implementing the new guidance, even though the final guidance was not issued until December 10.

Today, the U.S. District Court for the District of Oregon issued an order temporarily blocking those penalties. The court’s decision prohibits the federal government’s efforts to impose severe financial penalties on states and protects the continued operation of SNAP programs while the case proceeds.

 

Attorney General James Secures $2.4 Million in Debt Relief for New Yorkers Misled by Predatory Debt Servicer

Monterey Finance Unlawfully Charged Consumers to Lease Products and Services They Believed They Were Purchasing

Illegal Fees Often Raised Costs by 200 Percent; Consumers Urged to Give Away Pets to Shelters When They Could Not Make Monthly Payments

NEW YORK – New York Attorney General Letitia James today secured $2.4 million in debt relief and $175,000 in penalties, as well as other reforms, from Monterey Finance (Monterey), a financial services company that knowingly misled New York consumers with unlawful lease agreements disguised as traditional consumer financing agreements. An investigation by the Office of the Attorney General (OAG) found that until 2017, Monterey purchased and serviced payment plans for goods and services that were misleadingly presented to consumers to hide their exorbitant fees and other terms. Consumers who accepted these agreements believed they were purchasing a product or service. In reality, they were only leasing it, and were charged for monthly payments and fees that totaled well above the sticker price for the product or service they believed they were purchasing. In many cases, consumers paid more than 200 percent above the sticker price by the end of the transaction. Under a settlement with OAG, Monterey must cancel all outstanding leases in New York, pay $175,000 in penalties, stop collecting all outstanding debt from any leases, and make other reforms to end its deceptive and unlawful business practices. The agreement will provide approximately $2.4 million in debt relief to 835 New York consumers.

“Monterey preyed on consumers who needed financial assistance by charging illegal fees and deceiving them to make a profit,” said Attorney General James. “These misleading tactics cost New Yorkers millions of dollars. I am proud to have secured debt relief for those affected by Monterey’s deception and will always hold predatory lenders accountable.”

Monterey partnered with businesses to service and collect on contracts that offered “financing” to consumers at the point of sale. While consumers believed they were receiving a traditional retail loan to purchase a product or service, these contracts were actually lease agreements. Under these agreements, consumers were charged fees on top of monthly payments, including fees at the beginning and end of their lease terms. Many consumers were shocked to find out that they did not actually own the items they purchased, such as family pets and wedding dresses, and would not own them until they paid a final fee.

Monterey collected on these lease agreements, often charging consumers additional fees to pay their monthly lease payments. These illegal pay-to-pay fees further drove up costs. Consumers who fell behind on their monthly lease payments were threatened with repossession or transfer to Monterey’s nonexistent “legal department,” even for purchases like pets. In these cases, consumers – who were led to believe they owned their pets – were advised to deliver their pets to shelters when they could not make their monthly payments.

Consumers ended up paying well above the sticker price for purchases made with Monterey’s approved lease agreements. One consumer who signed a finance agreement to purchase a $2,000 puppy ended up paying $3,592.95 after all fees and monthly payments.

The OAG’s investigation found that Monterey violated New York laws by misleading consumers and servicing lease agreements for services, such as car repairs, that cannot be returned and have no residual value. While lease-to-own agreements should give consumers the right to return items they are leasing if they no longer wish to continue making payments for them, Monterey did not allow customers to return goods they purchased.

Under a settlement with OAG, Monterey will pay $175,000 in penalties and cease collecting on any debt originated from a lease – erasing approximately $2.4 million in debt for New York consumers. Monterey will also cancel all of its leases in New York and request that Consumer Reporting Agencies erase any factors that negatively impacted a consumer’s credit score due to its leases. In addition, Monterey cannot be involved with any leases for services, pets, and other goods with no clear resale value that cannot be leased.

Attorney General James is a leader in protecting New York consumers and businesses from predatory lenders. In April, Attorney General James sued payday lenders MoneyLion and DailyPay for taking advantage of New York workers with illegal high-interest loans. In January, Attorney General James secured a $1.1 billion judgment against Yellowstone Capital for its role in a predatory lending network targeting small businesses. In September 2024, Attorney General James secured more than $4.6 million for small businesses from Northern Leasing, which trapped businesses in overpriced leases for equipment. In August 2024, Attorney General James sued Acima for cheating New Yorkers with deceptive rent-to-own practices.

This matter was handled by Assistant Attorney General Julia K. Toce and Assistant Attorney General in Charge Deanna R. Nelson, under the supervision of Deputy Attorney General for Regional Affairs, Jill Faber. The investigation was conducted by Supervising Investigator Chad Shelmidine under the supervision of Assistant Chief Michael Leahy. The Attorney General’s Investigations Division is led by Chief Oliver Pu-Folkes. Both the Investigations Division and the Division of Regional Affairs are overseen by First Deputy Attorney General Jennifer Levy.

 

Attorney General James Sues Uber for Trapping Customers in Costly Subscriptions

AG James Joins Bipartisan Coalition Suing Uber for Misleading Customers with Difficult to Cancel Uber One Subscriptions

NEW YORK – New York Attorney General Letitia James and a bipartisan coalition of 20 other attorneys general today joined a lawsuit previously filed by the Federal Trade Commission (FTC) against Uber Technologies, LLC and Uber USA, LLC (Uber) for misleading customers by trapping them in recurring subscriptions to its Uber One service that were exceedingly difficult to cancel. The lawsuit alleges that Uber deceptively marketed and pushed users to enroll in subscriptions to its Uber One service, which promises savings on ride bookings and food deliveries. Once enrolled, often without knowing they had signed up, users were charged $9.99 per month and forced to navigate a labyrinth of confusing menus to cancel their subscriptions. Attorney General James and the coalition argue that Uber’s actions violate state and federal consumer protection laws and are seeking restitution for consumers and a permanent injunction on Uber’s deceptive practices, among other relief.

“Unwanted subscriptions that are seemingly impossible to cancel are driving up costs for everyday New Yorkers,” said Attorney General James. “Companies should not be able to profit by tricking consumers into recurring charges that can require hours of difficult work to stop. Today I am taking action to put an end to Uber’s misleading tactics and get New Yorkers their money back.”

Uber offers the Uber One subscription service for $9.99 monthly or a $96 annual fee. In advertisements and notifications within the app, Uber promises consumers that an Uber One membership will save them money on food delivery and ride bookings, and that Uber One members can “cancel anytime” without additional fees. Once enrolled, users are charged automatically on a recurring basis for their Uber One memberships.

Attorney General James and the coalition argue that Uber has violated the law by misleading consumers into signing up for Uber One and trapping them in recurring subscriptions. Pop-ups and notifications in the Uber and Uber Eats apps push users to sign up for Uber One, and misstate the benefits and cost savings of the service to consumers. Uber falsely claims that consumers will “save $25 every month” with an Uber One subscription. In addition, Uber’s claim of $25 monthly savings does not account for the monthly fees that users have to pay to maintain their Uber One subscriptions.

 

 

Attorney General James and the coalition also allege that Uber violated the law by using various tactics to prevent or make it extremely difficult for consumers to cancel their Uber One membership. Consumers must navigate a maze of misleadingly labeled screens and menus within the app to arrive at the page to cancel their subscriptions. Even if a consumer manages to find the right page, if they are within the final 48 hours of the end of their billing cycle, the “end membership button” is not visible to them. Consumers who do manage to find the “end membership” button do not end their membership by pressing it. Instead, they are taken through a series of offers to pause or receive discounts on their Uber One membership. In total, consumers must navigate through at least seven different screens that require at least 12 different actions in order to actually cancel their memberships.

 

 

 

Uber makes it even more difficult for consumers to cancel near the end of their subscriptions. The lawsuit alleges that Uber billed consumers before their monthly membership cycle ended, leading many consumers to be charged before their free trial period ended and before they were able to try to cancel their subscriptions. Consumers who tried to cancel in the app within 48 hours of their renewal date were sent into seemingly endless loops in the app, only to be told that payments were already in progress and that cancelling via the app is impossible. Consumers were required to contact “support” to cancel, but Uber gave them no guidance about how to do that. Even consumers who reached Uber support encountered unreasonably long wait times. Often, when they heard back from support, they had already been charged for the next billing cycle, even when they initiated their cancellation request well before the end of their free trial or current billing cycle.

Attorney General James and the coalition argue that Uber’s misleading tactics to push users into recurring subscriptions and prevent them from easily cancelling these subscriptions violate state and federal consumer protection laws, including the Restore Online Shoppers’ Confidence Act (ROSCA). The lawsuit seeks a permanent injunction stopping Uber’s illegal conduct, monetary damages, and other penalties.

Joining Attorney General James in this lawsuit are the attorneys general of Alabama, Arizona, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia, Wisconsin, and the District of Columbia, as well as the District Attorney for Alameda County, California.

 

 

Attorney General James Sues UPS for Cheating Seasonal Workers Out of Millions of Dollars

UPS Allegedly Underpaid Thousands of Seasonal Holiday Workers Through Systematic Campaign of Off-the-Clock Work, Inaccurate Timekeeping, and Wage Theft

NEW YORK – New York Attorney General Letitia James today filed a lawsuit against United Parcel Service, Inc. (UPS) for repeatedly and persistently stealing wages from thousands of seasonal delivery workers across New York state. An investigation by the Office of the Attorney General (OAG) found that for years, UPS has shortchanged seasonal workers who keep the company running during peak holiday demand by failing to record all hours worked, requiring widespread off-the-clock labor, and manipulating timekeeping systems to reduce paid hours. Attorney General James alleges that these unlawful practices deprived workers of millions of dollars and is asking the court to order UPS to pay restitution for current and former seasonal workers whose wages were unlawfully withheld.

“UPS built its holiday business on the backs of workers who were not paid for their time and labor,” said Attorney General James. “UPS’s seasonal employees work brutal hours in the cold to deliver the holiday packages families across the country count on. Instead of compensating these workers fairly for their labor, UPS has played the Grinch. I am fighting to get these workers their money back and stop UPS from continuing its cruel and unlawful wage theft.”

“We at Teamsters local 804 deeply appreciate the work Attorney General Letitia James and her office have done to hold corporations like UPS accountable,” said Vincent Perrone, President, International Brotherhood of Teamsters Local 804. “UPS thought they could exploit seasonal workers by not paying them for all time worked. But the Teamsters and the State of New York will always stand up to corporate greed and abuse. Thank you for standing with us and with working people across our great state.”

“Joint Council 16 thanks the Attorney General’s office for continuing to uphold the rights of working New Yorkers,” said Thomas Gesualdi, President of International Brotherhood of Teamsters Joint Council 16. “Too often, we see corporations getting away with the exploitation and abuse of vulnerable workers. Teamsters, alongside Attorney General Letitia James, will always fight back against corporate greed and malfeasance. We are proud to stand together and bring UPS into compliance with the law. Wage theft is theft.”

UPS is the largest package delivery company in the world, generating approximately $90 billion in annual revenue and employing nearly 500,000 people worldwide. Each year between October and January, the company hires thousands of temporary workers at more than 50 facilities in New York state. These employees include Driver Helpers, who assist full-time drivers with deliveries, and Seasonal Support Drivers, who use their personal vehicles to help the company meet delivery demand. In 2023, OAG opened an investigation after Teamsters Local 804 raised concerns about widespread nonpayment issues affecting seasonal delivery workers. After a thorough review, OAG ultimately concluded that UPS’s violations were not isolated errors, but rather repeated and persistent practices embedded across its New York operations.

Seasonal workers told OAG that they often reported to facilities or roadside meet-up points and then waited, sometimes for hours, without pay, and in some cases were sent home without ever clocking in. They also described going unpaid for time spent traveling between assignments, watching required training videos, returning undelivered packages, and handing in equipment at the end of their jobs. For workers brought on for just a few intense months each year, these unpaid hours meant losing critical seasonal income.

The OAG investigation revealed that UPS used unlawful timekeeping practices that led to systematic undercounting of hours. At times, UPS delayed clock-ins until a worker scanned or delivered the first package, even when workers had already been working or waiting on-site, in some cases for hours. The company automatically deducted 30-minute meal breaks regardless of whether workers took them and edited employees’ timesheets to reduce their paid hours. The OAG also found that UPS calculated pay based on a worker’s scheduled start time or delayed clock-in, whichever was later, ensuring that any early work went entirely unpaid.

Workers often reported to work at the start of their shifts only to discover that the packages or drivers needed to begin deliveries had not yet arrived. During these delays, they would frequently perform other tasks – such as preparing vehicles, loading packages, or traveling between meeting points – but none of this labor was recorded or compensated. Many seasonal workers logged more than 40 hours a week during peak holiday periods, yet UPS failed to provide legally required overtime pay. Workers were also forced to clock out before completing assignments and were denied wages for mandatory training, work performed during supposed meal breaks, and other required tasks that UPS failed to record as compensable time.

Attorney General James argues that UPS’s systematic undercounting of hours and the resulting underpayment of millions of dollars to seasonal workers constitute clear violations of New York Labor Law, including the state’s minimum wage, promised wage, overtime, wage-statement, and recordkeeping requirements. The lawsuit also alleges that UPS’s actions violate the federal Fair Labor Standards Act. Attorney General James is asking the court to order restitution for the workers who were denied wages and to require UPS to adopt sweeping reforms that end off-the-clock work and other unlawful practices.

This case is being handled by Assistant Attorneys General Jessica Agarwal, Anastasia Eriksson, and Julio Sharp-Wasserman under the supervision of Civil Enforcement Section Chief Fiona J. Kaye, Deputy Labor Bureau Chief Young Lee, and Labor Bureau Chief Karen Cacace with assistance from Research and Analytics Data Scientist Blythe Davis under the supervision of Director of Research and Analytics Victoria Khan and Deputy Director of Research and Analytics Gautam Sisodia, as well as Legal Assistants Yadira Filpo and Berenice Peck. Former Research and Analytics Data Scientists Jasmine McAllister, Kenneth Morales, and Chansoo Song also assisted. The Labor Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.

Attorney General James Takes Action to Protect Immigrant Workers 

AG James and 18 Other Attorneys General Sue to Stop Illegal Fees on H-1B Visa Program That Would Threaten Education, Health Care, and Other Essential Services 

New York Home to More Than 13,000 H-1B Recipients Working in Technology, Finance, and the Arts

NEW YORK – New York Attorney General Letitia James today joined a coalition of 18 other attorneys general in suing the Trump administration to protect the H-1B visa program, which allows highly-trained immigrants to temporarily work in the United States and fill critical roles in health care, education, technology, and other fields. In September, the administration suddenly announced that a $100,000 fee would be imposed on all new H-1B applications, a massive increase over the visa’s typical fees, which have historically been just several thousand dollars. H-1B visa holders fill essential roles as teachers, nurses, doctors, researchers, engineers, and more in communities across the country. The new fee threatens to completely upend the program and make it effectively inaccessible for government and nonprofit employers who rely on H-1B visa holders to provide essential services. In a lawsuit filed today in the United States District Court for the District of Massachusetts, Attorney General James and the coalition argue that imposing this new fee is unlawful and violates the Administrative Procedure Act.

“H-1B visas allow talented doctors, nurses, teachers, and other workers to serve communities in need across our country,” said Attorney General James. “The administration’s illegal attempt to ruin this program will make it harder for New Yorkers to get health care, disrupt our children’s education, and hurt our economy. I will keep fighting to stop this chaos and cruelty targeting immigrant communities.”

Since the 1950s, the United States has had a visa program that allows skilled workers to temporarily live in the U.S. and work in specialized fields. The current version of the H-1B program was created in the 1990s and allows employers to petition to hire workers in a “specialty occupation” for a maximum of six years. H-1B workers are employed in a variety of fields in both the public and private sectors, and the program plays a crucial role in filling labor shortages in medicine, education, and other highly skilled industries.

Attorney General James and the coalition argue that the administration’s new fee on H-1B visas will severely restrict states’ ability to hire new workers under the program to address labor shortages, disrupting access to education, health care, and other critical services. This shortage of workers would be particularly devastating for rural and underserved communities already facing shrinking workforces. In New York’s 16 rural counties, there are currently four primary care physicians for every 10,000 people. New York’s hospitals already face a pervasive nursing shortage estimated to reach 40,000 nurses by 2030. A reduction in H-1B visa holders would only exacerbate this shortage, as over a third of all health care workers in New York are immigrants. Nationwide, the American Medical Association estimates the United States will face a shortage of 86,000 physicians by 2036 – a shortage that H-1B workers will be critical in filling.

Limiting H-1B visas will also cause a shortage of teachers, researchers, and other workers critical to the country’s education system. Across the country, at least 930 colleges and universities employ staff on H-1B visas. More than half of these institutions are public four-year universities, and more than 10 percent are medical schools. In New York, the State University of New York (SUNY) employs 693 employees on H-1B visas, including many who serve students in rural and suburban areas of New York state. As Attorney General James and the coalition argue, limiting access to H-1B visas will lead to more crowded classrooms for students and disrupt critical research at leading universities. Other critical industries in New York, such as technology, finance, and the arts, also rely on H-1B visa holders to fill essential roles. Across the state, more than 13,000 people on H-1B visas work in these sectors.

Attorney General James and the coalition argue that the administration’s attempt to restrict the H-1B program with a sudden massive increase in fees contravenes the Immigration and Nationality Act, which established the program, as well as the Administrative Procedure Act. H-1B fees must be set by Congress or the Department of Homeland Security (DHS) after undergoing the proper rulemaking process. Neither of those happened in this case. In fact, the administration’s imposition of the new $100,000 fee was made without any advance notice to the public or input from affected groups. The lawsuit seeks an order declaring the administration’s actions unlawful and preventing the $100,000 fee policy from being enforced.

Joining Attorney General James in filing this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

Banner Image: AG James announces construction company settlement.  Image Credit – NYAG