Wells Fargo has expanded a review of auto products and services it finances as part of an effort to get ahead of heightened regulatory interest in the area, according to people familiar with the matter.
The embattled bank WFC, -1.93% in recent months has been reviewing sales and potential refunds in the so-called aftermarket products that customers purchase at an auto dealership when they buy a car.
Though banks generally don’t sell these products, which include extended warranties, roadside assistance, tire protection and other add-ons, their costs are folded into the buyers’ auto loans, which are often owned by lenders such as Wells Fargo.
The bank already has said that it is arranging refunds for some customers who bought certain insurance products as part of their auto loans, including guaranteed asset protection, or GAP insurance.
Financial regulators more broadly have been growing increasingly concerned about auto-related products tied to loans, even if the products aren’t sold by a bank. The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau require that banks ensure all third-party vendors comply with rules involving predatory or abusive practices.
An expanded version of this report appears on WSJ.com.
Popular on WSJ.com: