WASHINGTON—House Chief Deputy Whip Patrick McHenry (R-NC) is calling postal banking "a terrible idea" and requested that President Donald Trump's special task force on postal reform issue a prohibition on any such programs, enhancements or expansions. McHenry’s views were shared in a letter sent to Treasury Secretary Steven Mnuchin.
McHenry, who also serves as vice chairman of the House Financial Services Committee, cited research indicating that postal banking would "create a government subsidy that puts taxpayers on the hook to finance." He further noted the massive data breach at the Postal Service that jeopardized nearly one-million customers and employees' personal data, and an audit that found "insufficient controls" in place to stop money laundering schemes, reported NAFCU.
"Putting Americans' hard-earned money at risk at an agency with that kind of track record would be a recipe for disaster," he wrote.
NAFCU’s Concerns
NAFCU noted that it has raised concerns over the U.S. Postal Service offering banking services. The association holds that credit unions already offer loan products and savings mechanisms for their members, and consumers are best served by institutions that can offer a full range of financial services and develop relationships with their members.
McHenry added that in 2006, Congress made clear that the Postal Service is not allowed to offer any new nonpostal services and "any attempts by the Postal Service to expand or enhance its banking services are well beyond the scope of its statutory authority."