U.S. Senator Kirsten Gillibrand (D – NY) introduced legislation (S. 2755) to create a Postal Bank, which would establish a retail bank in all of the U.S. Postal Service’s 30,000 locations.
Between 1910 and 1967, the U.S. Post Office offered banking services. However by the 1950s, the need for the Postal Savings System was being questioned and in 1965 the Postmaster General recommended abolishing the system.
According to Senator Gillibrand, permitting the post office to offer basic banking services would benefit low-income Americans by wiping out the predatory payday lending industry.
According to the press release, the Postal Bank would offer small-dollar checking accounts, small-dollar savings accounts, small-dollar loans, transaction services, and remittance services.
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