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.

ProductCurrent PricesPlanned Prices
Letters additional ounce(s)15 cents20 cents
Letters (metered 1 oz.)50 cents51 cents
Domestic Postcards35 cents36 cents
Letters (1 oz.)55 cents55 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.

Heffler Claims Group
Heffler Claims Group is a national leader in class action settlement administration, specializing in the notice and administration of complex legal matters. Together with Prime Clerk, the leading bankruptcy claims and noticing agent and another Duff & Phelps company, we offer the most comprehensive administrative services in the industry.

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