Spat erupts over postal banking pilot
- Bank and credit union trade groups spoke out against the U.S. Postal Service’s (USPS) postal banking pilot program which was launched last month, saying the government agency is incapable adequately managing an operation that includes financial services.
- USPS’s new limited services are available at just four locations, in Washington, D.C.; Baltimore; Falls Church, Virginia; and the Bronx in New York City, and allow patrons to cash business or payroll checks up to $500. The post office test follows a long history of USPS offering financial services, according to the online outlet Slate.
- Trade groups including the Consumer Bankers Association (CBA), the American Bankers Association (ABA) and the National Association of Federally-Insured Credit Unions (NAFCU) argue banking services should be left to financial institutions, and not be placed in the hands of a government agency already struggling with funding issues.