A new proposal is on the table to introduce short-term loans to low-income people at your local post office.
We wonder, should call them post office loans or post office payday loans?
That is a good question to be asking as there is a huge difference between the two ideas, and we are hoping they are talking about the former, not the latter.
The post office has been exploring ways to generate a friendlier business environment that offers more services than the present selection, and getting into the small loan and debit card business seems like a wise choice to officials who are proposing the idea.
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Several senators, including Sen. Elizabeth Warren (D-Mass are actually behind promoting the post office in a new way.
Offering debit cards you can load with cash to pay your taxes, bills, and other such things you would normally use a debit card for, including other post office services.
You would even be able to load your paycheck onto the card.
Also in the proposal is to start offering small short term loans similar to payday loans.
This has come under great debate by many different organizations who feel this is the wrong direction to take our post offices.
The debates Begin
This will be opening a can of worms with many against it, including many politicians and banking officials, not to mention the payday loan industry itself.
Do we really want our government in the banking business is the biggest question, and along with that people ask what kind of loans are we talking about?
Will these be low-interest short-term loans with good regulations and no ability to extend them?
Or will these loans follow the path of high-interest payday loans?
While the post office does need to move into the 21st century with their business models, we here at Help With Payday Loan Debt are a bit skeptical.
If the model follows the path of really wanting to help people with low-interest short-term loans and offering a good alternative to having and using a bank account vs a debit card funded by a paycheck, then we are open to debate on these ideas.
If this is just another place to get a high interest unregulated payday loan with all of the baggage that cones with this type of service, then we give it a big thumbs down.
What do you think?
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