NAFCU President and CEO Dan Berger Monday expressed concerns with the U.S. Postal Service’s (USPS) check-cashing pilot program – which quietly launched Sept. 13 – and allows customers to use payroll or business checks to purchase single-use gift cards of up to $500 at post office locations in four cities.
“NAFCU urges policymakers to take steps to end the USPS’ pilot program offering paycheck-cashing services to consumers. Last week, USPS informed American consumers that it cannot manage its current mission of delivering mail on time,” said Berger. “Now, it has come to light that USPS is quietly expanding its reach into financial services without providing much clarity on how it plans to balance its current duties alongside this new undertaking.
“This program stretches the bounds of the postal service’s statutory authority and allows the underfunded and understaffed USPS to unfairly compete with credit unions who are already meeting the needs of low- to moderate-income individuals,” added Berger. “To better help the underbanked and underserved, Congress should instead allow all credit unions, as community-based financial institutions that prioritize consumers over generating profits, the ability to add underserved areas to their fields of memberships. The USPS already has its hands full with its current mission and lacks the bandwidth needed to run such a large and complex operation.”
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