Tue, Oct 20, 2020

Proposed USPS Rate Hikes Could Impact Class Action Settlements

Proposed postal rate increases would impact the price of pieces commonly used in class action settlement administration, including letters and postcards. The proposal would raise product prices approximately 1.8 percent for first-class mail, and 1.5 percent for other categories.

According to a United States Postal Service media release, the largest proposed increase is the single-piece letter additional ounces, which would increase from 15 cents to 20 cents.

The proposal is reviewed by the Postal Service Board of Governors. If accepted, the increases go into effect Jan. 24, 2021.

Product Current Prices Planned Prices
Letters additional ounce(s) 15 cents 20 cents
Letters (metered 1 oz.) 50 cents 51 cents
Domestic Postcards 35 cents 36 cents
Letters (1 oz.) 55 cents 55 cents (no change)
Flats (1 oz.) $1 $1 (no change)

While digital notice is increasingly utilized, many settlements still require mailing both notice and claims packets. Attorneys with cases settling in 2021 should factor these rate increases into their plans. Consulting with an experienced settlement administrator before crafting your settlement can help inform a plan that fully accounts for potential price increases.

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