WASHINGTON—In a letter to the House, NAFCU has detailed its concerns over postal banking proposal included in the omnibus appropriations package containing the fiscal year 2022 financial services and general government (FSGG) appropriations bill.
"NAFCU and our member credit unions are very concerned that allowing the United States Postal Service (USPS) to provide banking services will be beyond its core competencies, will raise a number of serious regulatory and consumer protection questions, and will present significant competitive issues for private sector entities," wrote Brad Thaler, vice president of legislative affairs. "We urge the removal of this provision from any final funding bill before its enactment.
"There are better approaches to address access to financial services, such as allowing all credit unions the ability to add underserved areas to their field of membership, as has been proposed in draft legislation before the House Financial Services Committee," continued Thaler.
Support for CDFI Fund, CDRLF Urged
In addition, Thaler offered support for increased funding for the community development financial institution (CDFIs) fund and the community development revolving loan fund (CDRLF), noting the programs have proven to be an "invaluable means of providing financial services to underserved areas."
The FY2022 FSGG, if approved as is, includes $330 million for the CDFI fund and $4 million for the NCUA’s CDRLF.