Senators Lead Efforts Opposing Postal Banking
Today, Senator John Boozman (R-AR) led a group of 19 Senators opposing the United States Postal Service’s (USPS) expansion into banking.
In September, the USPS launched a banking pilot program to expand consumer financial services to limited check cashing services. The program enables customers to purchase gift cards, which can be used like debit cards, of up to $500 using payroll or business checks for a small flat fee. This program follows consumer advocates and the postal union urging the creation of a public banking system to better serve unbanked and underbanked consumers.
In a letter to Postmaster General Louis DeJoy, the Senators questioned the USPS’ legal authority to implement such a program and whether the program falls outside statutory rules and regulations which generally prohibit USPS from engaging in non-postal services.
AFSA previously wrote to Congress opposing the USPS entering the financial space, noting that the “USPS is not equipped to provide consumers the high-quality financial products nor the consumer protections offered by consumer finance companies.” AFSA strongly supports increasing financial inclusion to unbanked and underbanked consumers and highlighted in the letter how its traditional installment and vehicle financial company members offer safe and affordable personal loans which have been proven to increase levels of financial inclusion and mobility.
November 16th, 2021 by Dan Bucherer