By Andrew Gibson
More than a quarter of all Americans are considered financially underserved because they lack access to traditional financial institutions. This is often a result of one’s geographic location or low income. In order to access their finances and make bill payments, these underserved Americans are frequently forced to rely upon alternative financial services like money transfers, check cashing services and payday loans. These businesses frequently prey on the financially underserved by including large fees, high interest rates and forced arbitration clauses with their products.
Companies should not have free rein to exploit low-income Americans by trapping them into a vicious cycle of debt. Accordingly, Public Citizen has signed on to the Campaign for Postal Banking with others like the American Postal Workers Union and Americans for Financial Reform to advocate for expanding the non-banking financial services offered by the U.S. Postal Service.
According to a 2014 report from the U.S. Postal Service Office of Inspector General (OIG), an independent oversight agency within the USPS, more than 68 million adults in the United States rely on services like payday loans, check cashing, and prepaid debit cards to access their earnings and pay bills.