The city has been inflating medallion prices while letting smartphone apps illegally poach yellow cabs’ business, taxi lenders charge in a letter to the state attorney general last week.

New rules proposed by the Taxi & Limousine Commission for smartphone apps sanction electronic hails for black cars and livery cars — although only taxis are allowed by law to pick up passengers on the street, according to the Melrose Credit Union.

“It is outrageous for them to now try to shield companies like Uber from New York state law by claiming that is actually only a hail when the electronic request for on-demand service is sent to a yellow taxi, but it is not a hail when the same request is sent to a for-hire service,” said Melrose Credit’s lawyer, Todd Higgins.

The letter demands Attorney General Eric Schneiderman enforce medallion owners’ right to street hails.

Melrose also accuses the TLC of posting misleading information when listing average monthly prices of medallions by excluding sales too far off the average.

“We appreciate Melrose’s concerns, though predicated on a misinterpretation,” said TLC spokesman Allan Fromberg. “The TLC is committed to offering the public innovative options, and ensuring a level field with rules that benefit all . . . especially the riders.”