Senator Outlines Dangers of Postal Banking
Last month, Senator John Boozman (R-AR) led a group of 19 other Senators in opposing the United States Postal Service (USPS) expansion into banking after. the USPS launched a banking pilot program in September to expand consumer financial services to 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. Consumer advocates and the postal union for years have called for a public banking system to better serve unbanked and underbanked consumers.
In an opinion piece published in The Hill today, Sen. Boozman expands on the problems he and his fellow senators see with the pilot program, including increased exposure to financial risk for taxpayers and burdening an already struggling postal system.
He also highlights an element that AFSA has long argued is critical to expanding safe, responsible financial services.
Local financial institutions help propel economic growth and job creation by providing access to credit. These lenders understand needs in the areas they serve and offer opportunities for small businesses and families to secure vital funding.
AFSA strongly supports increasing financial inclusion but has highlighted previously that postal banking is the worst possible way to achieve a worthy goal. Allowing the USPS to offer banking services opens the door to a host of regulatory issues, as well as the potential for unsafe banking practices.
AFSA members live and work in the communities they serve. Many have served their communities for more than four generations. What keeps customers coming back? The expertise and dedication that comes with offering high-quality financial products.
December 2nd, 2021 by Dan Bucherer