Wells Fargo & Co (WFC) - Get Report is facing more regulatory scrutiny surrounding its auto-insurance policies as the San Francisco Federal Reserve made an inquiry about the bank's sale of guaranteed asset protection through auto dealers, the Wall Street Journal reported.

The guaranteed asset protection (GAP) insurance products in question offered consumers additional protection beyond the standard auto policy and were frequently financed as part of a customer's loan.

If a customer totaled his car in an accident, the GAP insurance could help pay off the loan balance that wasn't covered by the customer's primary insurance provider, according to the Journal.

The San Francisco Fed has not opened a new investigation, saying this new inquiry was just part of its broader responsibility to supervise safety and soundness of banks. The Office of the Comptroller of the Currency has also opened a probe into these practices.

Wells Fargo stock traded down about 1% premarket Wednesday.

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