Congressman Luetkemeyer Leads Letter to End USPS Banking Program
WASHINGTON, D.C. – Today, Congressman Blaine Luetkemeyer (MO-03), Ranking Member on the Consumer Protection & Financial Institutions Subcommittee led a letter regarding a United States Postal Service (USPS) pilot program that allows customers to exchange a paycheck or business check for a gift card in value up to $500, which has not been approved by the Postal Regulatory Commission (PRC) and is in direct violation of the Postal Accountability & Enhancement Act (PAEA). Excerpts and the link to the full letter can be found below.
“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. 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.”
“Despite its attempt to skirt the PAEA’s requirements for PRC approval in this case, it is clear the USPS is expanding its footprint by offering additional financial products and services. As the independent Federal agency charged with providing transparency and accountability at the USPS, we ask the PRC to assert its statutory role with respect to the pilot program and subject the matter to the appropriate procedures outlined in the PAEA for new products. Furthermore, we encourage the PRC to prevent the USPS from participating in any additional financial services in the future. Considering the USPS is $188 billion in debt, it is apparent the USPS is not in a position to expand financial services to consumers before they get their own fiscal house in order.”
The full letter can be found HERE.