USCC: Postal Service Should Stick To Delivering Mailposted May 29, 2015
May 29, 2015 – Washington, D.C. – The U.S. Consumer Coalition (USCC) released the following statement regarding the U.S. Postal Service’s recently released white paper proposing that the agency offer financial products to customers, in some cases partnering with credit unions to provide prepaid cards and small loans:
“This is either a sign of desperation for the cash-strapped agency or an attempt to unfairly compete with private sector financial institutions. For an agency to spend limited financial resources to evaluate doubling down on failed business models is exactly the reason the USPS is a failing agency in the first place. No investor would look for ways to expand a failing business like the USPS unless they could use someone else’s money to do it, in this case, the American taxpayer. The Post Office getting into the loan business will mean decreased privacy for consumers and increased involvement on the part of the Federal government in the monitoring of Americans’ financial transactions.
The USPS, which teeters on the brink of insolvency, should reform to be more competitive in its core competency rather than trying its hand at banking. But raising revenue for the beleaguered agency may not be the objective after all. It cannot be mere coincidence that the Consumer Financial Protection Bureau and Department of Justice have been targeting the very same kinds of financial products the Postal Service is now contemplating providing. The proposal demonstrates a coordinated effort to eliminate private sector choices for consumers in favor of what could easily become taxpayer-backed financial products.”
The U.S. Consumer Coalition (USCC) is a grassroots consumer advocacy organization working to protect and expand access to free-market goods and services.