WASHINGTON—CUNA and NAFCU have joined with seven other financial services trade groups to oppose the inclusion of a proposed amendment that would create a postal banking pilot program in the fiscal year 2021 Financial Services and General Government (FSGG) bill.
The opposed-amendment was added to the bill by a voice vote late last week.
"Although we appreciate—and strongly support—efforts to increase financial inclusion across the country, we are deeply concerned that allowing the U.S. Postal Service (USPS) to provide banking services will be beyond the Postal Service’s core competencies, will raise a number of serious regulatory and consumer protection questions, and could leave consumers less protected than they would be at a regulated financial institution," wrote the trade groups.
In the letter sent to House leadership, the groups noted that postal banking would not address the USPS' core financial challenges, and instead could make them worse, pointing to written statements from the Treasury Department and the postal service.
Additionally, the trades urged Congress to address postal reform efforts by enacting legislation that would "reduce costs and increase efficiencies to put the U.S. Postal Service on a sound and sustainable financial path over the long run."