How Post Offices Can Take On The Payday Loan Industry

Apr 27, 2015 | | Say something

With the postal banking services taking a front seat, there are speculations about formal talks between U.S. Postal services head and the leader of union of postal workers in the nation. The president of the American Postal Workers Union (APWU) ‘Mark Dimondstein’ told that the postal banking services need a refreshing approaching and the right time has come for this.

‘Banking facilities attract lot of revenue for the post offices across the world’, tells Dimondstein. He believes it is a beneficial scenario, both for workers and the postal services. The simple banking services which were offered till 1966 were banned under federal reforms. Now, the postal departments feel the need to rejuvenate it with smartly designed banking services for consumers.

The Office of the Inspector General last year said that the agency can offer check cashing, money transfers and small loans to consumers who do not own a bank account. These services are advertised as a smarter alternative to costlier services which claim they offer the “best payday loans”. This idea has gained wide recognition everywhere in America including critics of Wall Street like Sen. Elizabeth Warren. In a seminar, Warren has said that ‘predatory lending can be discouraged if the experienced and well trained postal department comes in front to help people financially.

The inside people from the US postal department seem divided on this subject. Some are feeling that it is long needed step to revive postal services. While some believe that it will decrease the already dying postal and mailing services. They say if postal services take the burden of banking too, they will not be able to do justice with mailing services. Ultimately, this will force postal services to perish.

There is possibility of a new contract between the postal services and APWU very soon. The employee health benefits and retirement plans would top the charts in this awaited discussion. Dimondstein believes ‘incorporating banking services into postal department would be a welcome change for the borrowers overburdened with the payday loans’.

With a replacement in management of the postal union, there is expected new flow of approach into the postal banking. A spokeswoman from the union said – ‘we are strongly looking forward to have a negotiation with the postal department. Our main motive will be the welfare of employees and the revival of postal banking services. Many leading financial experts seem convinced with the idea of incorporating simple banking services into postal facilities. They see it as a welcome change required to breath in fresh air into the dying postal services.

At the end of the day this is a money making scheme for the post office, which may or may not be good news for the consumer.

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