March 26, 2014

Warren reiterates push for USPS banking

March 27, 2014 – Wednesday's Senate Banking subcommittee hearing on alternative financial products brought another push from Sen. Elizabeth Warren, D-Mass., in favor of financial services being offered by the post office, according to NAFCU lobbyists.

The USPS Office of Inspector General put out a white paper in January suggesting that the USPS offer financial services – pointing out that it could earn $9 billion by targeting underbanked customers.

NAFCU has concerns about this proposal. Senior Vice President of Government Affairs and General Counsel Carrie Hunt said credit unions are already known for their community service and outreach to those who are underserved and underbanked. "Credit unions already offer excellent 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 establish relationships with their members," she said.

During Wednesday hearing, "Are Alternative Financial Products Serving Consumers?" the Senate Banking Subcommittee on Financial Institutions and Consumer Protection heard from representatives from The Pew Charitable Trusts and Neighborhood Housing Services of Greater Cleveland, among others.