USPS Small Banking Services Initiated
Briefly, with more info being found at The American Prospect by David Dayen (link below). The USPS has initiated check cashing service for a minimal fee. And Louis Destroy the USPS DeJoy has bought into this service.
The pilot was launched on September 13 (?) in four locations: Washington, D.C.; Falls Church, Virginia; Baltimore; and the Bronx, New York. The initial banking test allows customers to cash business or payroll checks at the post office and place them onto a gift card. Although DeJoy did not initiate this and is usually too busy trying to wreck the place, DeJoy did buy into the test.
Under its current authority, the post office can expand its operations to include financial services options. One of the major postal workers unions even has it included in their bargaining contract. The pilot project kicks off in four cities. Customers can cash payroll or business checks of up to $500 at four selected USPS office locations. The money is put into a single-use gift card.
Just another executive action the Biden administration has initiated to help citizens.
The significance of this move is the direct competition to the ripoff multibillion-dollar check-cashing store fronts, who prey on workers who do not have banks or other less costly places to cash a check or get loans.
The US Post Office charges a flat fee of $5.95 as opposed to $15,00 at commercial places or WalMart which charges $4 to $8.
Perhaps, this will grow into savings account plans also.
I don’t see the purpose of this program. Almost every single bank in the US offers checking accounts that cost less than $5.95 a cashed check. What’s the purpose? The only thing I can think of is that people who will not get approved for a bank checking account (for whatever the reason) catches a break.