WASHINGTON – U.S. Senator John Boozman is warning a new United States Postal Service pilot program opens the door to federalizing financial services and has called on the agency to discontinue the misguided venture and focus instead on its mission of mail delivery.
USPS launched its postal banking pilot program in September. The following month, the agency announced it will further slow service and increase prices in an attempt to reverse its revenue shortfall of more than $75 billion from 2007-2019.
In a column published in The Hill, Boozman questioned the need for expanding USPS responsibilities given delays to mail delivery and its inexperience in financial services.
“If we have doubts about something as simple as our Christmas cards arriving on time, why should we trust it with our money?” Boozman wrote of the Postal Service’s newfound interest in banking.
In 2018, a task force review of postal reforms recommended avoiding expansion into new sectors like banking. This service is best suited for community banks. Local lenders understand needs in the areas they serve and offer opportunities for small businesses and families to secure vital funding – an area in which USPS has no experience.
“Arkansas banks have the expertise to reliably and safely serve customers’ needs. Acting as a bank would prove very difficult for the postal service, which has little to no knowledge about the banking requirements of consumers and small businesses,” Arkansas Bankers Association Chairman Jim Cargill said. “With over 1300 branches and offices in Arkansas, our community banks are best situated to know and serve the customers in their community.”
In a letter sent to U.S. Postmaster General Louis DeJoy last month, Boozman led his colleagues in questioning the agency about the launch of the pilot program and its authority to implement the initiative without congressional approval. Members requested answers to their questions by December 3.
Original article source: https://www.boozman.senate.gov/public/index.cfm/2021/12/boozman-doubts-about-christmas-cards-arriving-on-time-should-raise-red-flags-on-trusting-postal-service-with-finances | Article may or may not reflect the views of KLEK 102.5 FM or The Voice of Arkansas Minority Advocacy Council