WASHINGTON — Sen. Kirsten Gillibrand, D-N.Y., on Wednesday unveiled a bill that would empower the U.S. Postal Service to take deposits and make loans, a move she said would "wipe out" predatory lending and improve consumers' access to financial services.
The Postal Banking Act would place a retail bank branch in each of the Postal Service’s 30,000 locations — branches that would provide “low-cost, basic financial services to all Americans,” according to a press release.
In a tweet, Gillibrand said that the legislation would “wipe out the predatory practices of the payday loan industry overnight by providing an accessible and low-cost alternative."
“The federal government has backed financial institutions directly and indirectly for decades with FDIC insurance, FHA backing, and bailouts,” Gillibrand tweeted. “But those 'for-profit' banks have left too many behind. It's time to close the gap — and this time, no one will get rich on the taxpayers' dime. This is a simple solution to a problem facing every state in this country.”
Legislative language has not yet been released for the bill, but a Gillibrand spokesperson said that the text should be introduced later Wednesday.
The idea of having the Postal Service offer banking services goes back more than
Many influential Democrats — including Sens.
But some advocates, including the USPS inspector general who sparked renewed interest in the idea, have
