The War on the Post Office

 Meanwhile, the need for postal banking is present and growing. According to the Campaign for Postal Banking, nearly 28% of US households are underserved by traditional banks. Over four million workers without a bank account receive pay on a payroll card and spend $40-$50 per month on ATM fees just to access their pay. The average underserved household spends $2,412 annually — nearly 10% of gross income — in fees and interest for non-bank financial services. More than 30,000 post offices peppered across the country could service these needs.

The push to revive postal banking picked up after January 2014, when the USPS Inspector General released a white paper making the case for postal banks and arguing that many financial services could be introduced without new congressional action. The cause was also taken up by Sen. Elizabeth Warren and Sen. Bernie Sanders, and polling showed that it had popular support.

In a January 2018 article in Slate titled “Bank of America Just Reminded Us of Why We Need Postal Banking,” Jordan Weissman observes that Bank of America has now ended the free checking service on which lower-income depositors have long relied. He cites a Change.org petition protesting the move, which notes that Bank of America was one of the sole remaining brick-and-mortar banks offering free checking accounts to their customers. “Bank of America was known to care for both their high income and low income customers,” said the petition. “That is what made Bank of America different.” But Weissman is more skeptical, writing:

via truthout The War on the Post Office

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