USPS continues postal banking pilot, despite House Republicans’ objections

The Postal Support is telling its regulator it has no plans yet to pull the plug on a postal banking pilot, inspite of a deficiency of buyers and opposition from Household Republicans.

USPS told the Postal Regulatory Commission in a latest filing that it will keep on the postal banking pilot “in its latest form” previous March 2022.

“No last determinations have been reached with regard to ending the pilot, or with regard to any other likely steps that could possibly be taken to modify the pilot,” USPS lawyers wrote.

USPS spokeswoman Tatiana Roy stated Wednesday that the agency did not have any added updates on the pilot beyond its submitting to the PRC.

USPS informed the commission in January that six consumers experienced taken gain of the check-cashing pilot it released final September, and that the agency manufactured just above $35 in revenue.

The fee is directing USPS to present detect when it terminates the program.

USPS quietly introduced the pilot application on Sept. 13, which allows consumers to cash payroll and enterprise checks in the form of present playing cards.

For a flat fee of $5.95, clients can order a solitary-use reward card of up to $500, making use of business enterprise or payroll checks as payment. USPS will not acknowledge checks more substantial than $500, and won’t disburse money for any checks.

4 write-up office environment destinations are at this time participating in the pilot in Washington Baltimore Falls Church, Virginia and the Bronx, New York.

The company previously presents some fundamental money expert services, together with cash orders, digital funds transfers and cashing checks issued by the Treasury Department, but would require laws to get on a lot more strong solutions at its a lot more than 34,000 retail spots. 

The Congressional Analysis Support identified USPS supplied some economic items in the 20th century, but they have not been available due to the fact the agency terminated the Postal Discounts Technique in 1967.

Although progressive Democrats have introduced legislation in recent a long time that would broaden banking services at USPS, Property and Senate Republicans have dismissed these proposals, expressing they go over and above the agency’s core mission of delivering mail and deals.

Leading Republicans on the Property Oversight and Money Companies Committees, in a letter to Postmaster General Louis DeJoy on Wednesday, expressed irritation with USPS for prolonging an “unsuccessful” pilot program.

Dwelling Oversight and Reform Committee Rating James Comer (R-Ky.), Home Financial Solutions Committee Position Member Patrick McHenry (R-N.C.) and Consumer Security and Fiscal Establishments Subcommittee Ranking Member Blaine Luetkemeyer (R-Mo.)

Lawmakers mentioned the pilot violated legal restrictions on USPS giving or acquiring new merchandise outside the scope of its standard postal providers, and that USPS released the plan with out approval from Congress or the PRC.

“The program violated prolonged-standing prohibitions that avoid USPS from providing or establishing new non-postal products and solutions, and about the training course of four months, it proved really unpopular. It is thus unclear why, and on what foundation, the system has been prolonged,” they wrote.

The lawmakers also pointed to the pilot’s absence of buyers as proof that the program “was not intended in reaction to purchaser demand from customers.”

“The failure of the pilot plan demonstrates that customers are not intrigued in banking with the federal authorities, including USPS,” the lawmakers wrote.

President Joe Biden just lately signed into legislation the Postal Service Reform Act, which specifies postal expert services to incorporate “the shipping of letters, printed make any difference, or mailable deals, including acceptance, collection, sorting, transportation or other features ancillary thereto.”

The lawmakers told DeJoy this definition of postal solutions in the legislation “exists to make certain USPS focuses on its distinctive function and does not concentration on novel non-postal merchandise and expert services that could limit personal market place advancement, which includes the marketplace for economic companies.”

PRC Chairman Michael Kubayanda, in a March 9 letter to House Republicans, mentioned the commission has been “actively engaged” with USPS in supplying oversight and providing specifics about the pilot application.