DENVER — Shortly after Aurora resident Gwen Bonilla registered her 2025 Subaru Forester with the Colorado Division of Motor Vehicles in November, she received a letter marked “Time Sensitive” and “Final Attempt to Notify.”
The notice claimed she had not contacted them regarding the “vehicle service contract” on her Subaru and urged her to call with her current mileage before a stated deadline.
It warned that by “neglecting to activate” coverage, she could be financially liable for repairs after her factory warranty expires — and pressed her to act quickly to meet “eligibility requirements.”
“This was the first time that we were finally buying a brand new car, like not a used car… and that was a really big deal,” Bonilla said. “I was a little confused, because didn’t we just do all of this at the dealership?”
The letter included the make and model of her vehicle, a “customer ID number” and contact phone, but no company name, address or website.
“That’s when my fraud alert signals were going up,” she said. “Urgency is a fraud tactic… they want you to panic.”
Bonilla, who previously worked as a fraud analyst, searched the phone number online and found threads of consumers describing similar experiences.
She filed a complaint with the Better Business Bureau and uploaded the letter so others could be aware.
BBB warns letters are increasingly convincing
Megan Conradt with the Better Business Bureau said such mailers are a common tactic, though their appearance has changed over time.
“These kinds of scams are pretty common,” she said. “It’s probably become increasingly more alarming in that it looks more official.”
Conradt said in some cases, the sender may be a legitimate warranty company, but high-pressure tactics can still create confusion.
“It is a red flag if there’s just a phone number,” she said. “You just have to be really careful… read the fine print, read the contract and understand what warranties actually cover.”
Past cases: lawsuits and refunds
In 2024, the Colorado Attorney General sued Champion Car Warranty in Colorado Springs, alleging the company sold fraudulent car warranties to thousands of Coloradans. Read the AG’s news release here
That same year, the Federal Trade Commission announced refunds for consumers harmed by an "extended vehicle warranty scam" involving American Vehicle Protection. The refunds included payments to 292 people in Colorado. Read the FTC’s release here
Questions about data sharing
Bonilla says the timing of the letter, about a week after she registered her car with the DMV seems suspicious.
“I started to wonder if it was maybe the DMV that shared our information somehow,” she said. “It’s creating a lot of stress and anxiety for consumers… I don’t want to get random fake notices in the mail that are putting a lot of pressure on me and my busy schedule.”
The DMV said in a statement that it only shares bulk driver and vehicle data with NIC Colorado, Tyler Technologies, its contracted vendor, for uses allowed by the federal Driver Privacy Protection Act and Colorado law.
Examples include motor vehicle verification, crash history data, title and registration records for recall processes, and tolling. Direct marketing is not allowed.
“NIC Colorado, Tyler Technologies, is responsible for ensuring that all sub-vendors and end users are using the information in accordance with the contract, state law, and federal law,” said DMV Communications Specialist Corinne Willer in an email.
The DMV said any requester must enter into a bulk records agreement, attest they will not use the information in any prohibited way, and submit the form annually. Violations can result in civil penalties under federal and state law.
What consumers can do
The BBB recommends consumers verify any warranty claims directly with their dealership or manufacturer, avoid calling numbers from unsolicited notices and report suspicious mail to BBB.org.
Bonilla hopes sharing her experience will help others recognize the warning signs.
“The more examples the BBB can see… it makes us safer as a community,” she said.
