Officials in Montana are warning residents not to become the victims of a new auto warranty scam that has been flooding their mailboxes in recent weeks.

Many residents, sadly, have already lost money to this form of vehicle warranty fraud, law enforcement officials said – and they are trying to spread the word to avoid other people falling prey to it.

Here’s how the scam works:

People get a letter that claims to be from the state motor vehicle department. It says that there is a new law requiring people to have an auto warranty issued by the state in addition to their current warranty.

It goes on to say that if people do not purchase a warranty from the state, they could lose their driver’s license and have their vehicle impounded. It then gives them a number to call to purchase the state warranty by phone.

The problem is that there is no such law and the state does not sell auto warranties. You can be sure that anything you get in the mail that says otherwise is simply someone trying to steal your money.

If you get one of these scam notices in the mail, officials ask you to contact your local police department.

For information about real warranties you can use our free auto warranty search service.

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