Senate Postal Bill Could Pave Way For Credit Union Hikes
A 10% increase in postage rates could cost credit unions $30 million annualized.
There’s no Call Report data that quantifies credit union postage costs, but CUNA Vice President of Economics and Statistics Mike Schenk gathered credit union data for Credit Union Times in an attempt to quantify how the 21st Century Postal Service Act, which is currently being debated in the Senate, could affect credit unions.
S. 1789 proposes a 12% increase to first class postage stamps, but currently does not increase business class rates. However, the legislation could pave the way for future rate increases that would affect credit unions.
Schenk said CUNA estimates that credit unions spent roughly $300 million on postage in 2011, an amount equal to about 0.03% of assets.
“Obviously, at the institution level, the actual expenses will vary widely based on the use of e-statements and other electronic correspondence, as well as based on the credit union’s approach to marketing, it’s field of membership composition, and similar characteristics,” Schenk said.