Sanders-Warren Wing of the Democratic Party Push for Postal Bankingposted July 25, 2016
Monday, July 25, 2016 – Washington, D.C. – US Consumer Coalition (USCC) President Brian J. Wise issued the following statement today in response to calls in the Democratic Party platform to allow the United States Postal Service (USPS) to offer financial products to customers:
“The USPS, which reported a net loss of over $2 billion in the first quarter of the year, should be reformed to be more competitive in its core competency of delivering mail rather than trying its hand at banking.
“It’s no surprise that activists in the Democratic Party successfully included language to turn the failing USPS into a financial institution. These same activists led the push for the Consumer Financial Protection Bureau to enact rules that will crush the small dollar lending market. Now they want the USPS to fill the void by offering taxpayer-backed financial products.
“There’s no evidence low-income consumers would be better off under postal banking. If anything, the new risks, costs, and regulatory burdens that come with it would be passed on to the consumer through high rates and fees.
“This is yet another sign of the growing influence of the Sanders-Warren wing of the Democratic Party. Both Senators Bernie Sanders and Elizabeth Warren have routinely pushed for the federal government to unfairly compete with the private sector.”
The US Consumer Coalition (USCC) is a consumer advocacy organization that promotes expanded consumer choice, responsible regulation of consumer-facing industries, fair market conditions, and consumer freedom.