Democrats Support Letting Post Office Become Banker for Poor

Friday, 07 Feb 2014 12:16 PM

By Courtney Coren

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
A paper released by the U. S, Postal Service's inspector general suggests that the agency might be able to bolster its bottom line by offering bank-like services to low income individuals, and congressional Democrats are getting on board.

The white paper released by the Office of the Inspector General projects that the post office could bring in $8.9 billion per year by providing "non-bank financial services" to people who don't have bank accounts and resort to using payday loan and check cashing services to get by.

The services the post office could provide include prepaid check cards and small loans at a much lower cost than is usually charged by payday loan services.

According to the report, this "underserved population" makes up about 68 million adults, who spends an average of $2,412 per household on such services and in 2012 spent about $89 million.

Democratic lawmakers are getting behind the idea saying that it would not only help the struggling postal service, which has operated in the red for seven years, but also for low income individuals, who don't have access to major banks, The Hill reported.

Even before the report, Rep. Elijah Cummings, D-Md., proposed a measure to give let the post office offer check cashing services.

Another Democrat, Sen. Elizabeth Warren of Massachusetts also endorsed the recommendation in an opinion piece she wrote for The Huffington Post.

"If the Postal Service offered basic banking services — nothing fancy, just basic bill paying, check cashing, and small-dollar loans — then it could provide affordable financial services for underserved families and, at the same time, shore up its own financial footing," Warren wrote.

However, Republicans and bankers aren't so quick to get on board, noting that the post office has done such a poor job of managing its other operations.

"They can't even deliver your mail on time," Camden Fine, head of the Independent Community Bankers of America, told The Hill. "The track record speaks for itself. If this was about competition, give me all the sloppy competitors I can get."

Republican Rep. Jason Chaffetz of Utah also balked at the idea.

"There are unique things that the Postal Service can offer," Chaffetz said. "But being your local loan shark is not one of them."

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Prosecutors Consider Charges After Homeowner Kills Burglar

Friday, 25 Jul 2014 18:55 PM

Prosecutors deciding whether to charge a California man who says he fatally shot a violent burglar in the back in an all . . .

Florida Judge Overturns State's Gay Marriage Ban

Friday, 25 Jul 2014 18:52 PM

A Florida judge has overturned the state's ban on same-sex marriage in a ruling that applies to Miami-Dade County, agree . . .

GOP Rep. Fleming: Obama Impeachment Talk 'Pure Politics'

Friday, 25 Jul 2014 18:08 PM

Any discussion of Republicans working to impeach President Barack Obama over any executive action he might take on immig . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved