Postal Service looks to end at-your-door mail

If you’re moving to a newly built house, say goodbye to mail delivery at your door. And if some House Republicans get their way, all door-to-door mail delivery will go away.

The U.S. Postal Service is marching towards a more “centralized delivery,” where residents pick up their own mail from clusters of mail boxes located in their neighborhood. Local postmasters are sending hundreds of letters to fast-growing communities, warning that cluster boxes will be the way mail will be delivered to new developments.

In the past year, the cash-strapped Postal Service has been asking companies in industrial parks and shopping malls to also adopt this form of mail delivery.

But Rep. Darrell Issa, the California Republican leading the House effort to save the postal service, wants more. He has made doing away with doorstep delivery a key part of his bill, which would require everyone to get mail at a curbside box or from a cluster box. Read more >>

Postal Service backs down on cutting Saturday mail

The beleaguered U.S. Postal Service backed down from its cost-saving plan to eliminate Saturday mail delivery, acknowledging that Congress barred a move that supporters said was essential to addressing the agency's dire financial condition.

Despite the retreat, the governing board said Wednesday that it's not possible for the Postal Service to meet its goals for reduced spending without altering the delivery schedule. Delaying "responsible changes," the board said, only makes it more likely that the Postal Service "may become a burden" to taxpayers.

The Postal Service said in February that it planned to switch to five-day-a-week deliveries beginning in August for everything except packages as a way to hold down losses.

But that announcement was a gamble. The agency essentially was asking Congress to drop from spending legislation the longtime ban on five-day-only delivery. Congress did not do that when it passed a spending measure last month. Read more >>

Postal Service Prepares for Second Default in Two Months

The U.S. Postal Service will default this week on a $5.6 billion congressionally mandated obligation to pre-fund retiree health benefits, marking the second time in two months the cash-strapped agency has done this.

The Postal Service last month failed to pay $5.5 billion for its fiscal 2011 prepayment obligation, which originally was due in September 2011 but was deferred by Congress until Aug. 1. That was the first time it ever defaulted on a payment to the Treasury Department. The $5.6 billion due this week, on Sept. 30, represents this fiscal year’s obligation.

Before this year, Congress helped USPS defer pre-funding payments required by a 2006 congressional mandate. Postal reform has challenged this Congress. Lawmakers warn that when they revisit the issue after the November election they likely won’t reach agreement on as major an overhaul as some deem necessary. USPS lost $5.2 billion in the third quarter of fiscal 2012, $2.1 billion more than during the same time period in 2011. Read more >>

Post office nears historic default on $5B payment

The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.

With cash running perilously low, two legally required payments for future postal retirees' health benefits - $5.5 billion due Wednesday, and another $5.6 billion due in September - will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.

The defaults won't stir any kind of catastrophe in day-to-day mail service. Post offices will stay open, mail trucks will run, employees will get paid, current retirees will get health benefits.

But a growing chorus of analysts, labor unions and business customers are troubled by continuing losses that point to deeper, longer-term financial damage, as the mail agency finds it increasingly preoccupied with staving off immediate bankruptcy while Congress delays on a postal overhaul bill. Read more >>

Citibank exposes 600,000 customers' Social Security numbers

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chicagotribune.com
Ralph Remakel received a Citibank letter postmarked Feb. 16 that notified him of a recent Citibank error. It turns out he wasn't the only one.

In late January, Citibank mailed year-end tax statements to 600,000 Citi customers via the U.S. Postal Service that included the customers' Social Security numbers ... on the outside of the envelope.

Citi called the mistake a "processing error."

Although the nine-digit numbers were not identified as Social Security numbers (they were printed at the lower edge of the envelope with other numbers and letters and resembled a mail routing number), Citi still reacted to the mistake. EVP and Director of Citibank Client Services Norman White sent customer notification letters to every affected Citi customer during the week of Feb. 15, apologizing for the error.

The letter offered Citi customers the option to enroll in a free, 180-day credit monitoring service arranged by Citibank, but White also encouraged customers to regularly review activity on their accounts.

Remakel said he did not take advantage of Citibank's credit monitoring service offer.

"It’s like small change compared to the effect of me getting my Social Security number compromised," Remakel said. "Who would would really see it except the post office? But it’s not like it’s hidden in any way. What’s the easiest way to take someone’s identity? Their Social Security Number."

(See the full text of the letter below)

Citibank said in a statement that the company believes the error produced little to no risk to its customers and that it has been corrected for all Citibank's future mailings.

"Although there is little or no risk to our customers, we decided to be completely transparent to our customers by notifying them of the error," the statement said. "It is an important part of our commitment to our customers to be fully transparent and to give them the peace of mind that comes from banking with people they trust."

Remakel, however, was not satisfied with his notification letter.

"I was almost to the point of calling them and saying, 'Hey, for your blunder, how about wiping out everything I owe you?',” he said.

Full text of Citibank's notification letter:We are writing to inform you that due to a processing error the nine digits in your Social Security number, along with a string of other numbers and letters all resembling a mail routing number, were printed on the lower edge of an envelope containing a year-end tax statement that we mailed to you recently.

We believe there is little or no risk to you. However we wanted to bring this to your attention, apologize and confirm that changes have been made for all future mailings.

Should you nonetheless remain concerned, we have arranged for you at your option to enroll in a credit monitoring service at no cost to you for the next 180 days. To activate this coverage, please call the toll-free number or visit the website listed below and enter the redemption code. The redemption code is required for enrollment. As always, we encourage you to regularly review activity on your accounts.

For credit monitoring service coverage:
Toll-Free Number: 1-866-212-9114
Website: www.identityguard.com/alert
Redemption Code: _______________

We are sorry for any inconvenience this may have caused you. Do not hesitate to contact us at 877-478-6597 if you have any questions.

Sincerely,

Norman Wright
EVP & Director, Citibank Client Services