Member Corner

The CFPB began an investigation into Wells Fargo only after the bank contacted the agency and the Los Angeles city attorney had filed a civil complaint, according to documents released by the House Financial Services Committee.

Documents released by Chairman Jeb Hensarling included a May 8, 2015, letter from the CFPB to Wells in which the bureau says news reports in the Los Angeles Times and the city complaint have raised “significant concerns and questions” about Wells Fargo’s sales practices.

The letter, signed by CFPB regional director Edwin Chow, asked Wells for details on its sales practices and urged the bank not to destroy any documents.

“What a coincidence,” said Rep. Ann Wagner. “The CFPB was asleep at the wheel.”

Richard Cordray defended the agency during his semi-annual appearance before the committee today.

“We had had previous indications that there had been problems at Wells Fargo,” he said. “It wasn’t the L.A. Times article that tipped us off.”