Luetkemeyer calls USPS banking program “direct violation” of PAEA

Representative Blaine Luetkemeyer, R-Mo., the Ranking Member of the House Financial Services Subcommittee on Consumer Protection and Financial Institutions,  wrote to Postal Regulatory Commission (PRC) Chairman Michael Kubayanda Tuesday, stating the USPS pilot program offering paycheck-cashing services has not been approved by the PRC and is in direct violation of the Postal Accountability & Enhancement Act (PAEA).

The pilot program – which quietly launched in September – allows customers to use payroll or business checks to purchase single-use gift cards of up to $500 at post office locations in four cities.

“The Postal Service’s attempt to offer a financial services product without proper approval from the PRC raises questions as to the intentions of USPS leadership and the PRC’s authority to conduct oversight of the Postal Service’s product lines,” stated Luetkemeyer. “The notion that USPS could engage in this pilot program by justifying it as a new payment option—as opposed to a new product—is an affront to the PRC’s statutory role.”

NAFCU has long opposed the proposal saying that, although the association strongly supports the important core work of the USPS and is committed to identifying long-term solutions to ensure an efficient, self-sustaining, and affordable U.S. postal system, postal banking is not one of those solutions.

 

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