USPS issues customer refund following News 5 Investigation

Posted at 12:23 AM, Jul 11, 2017
and last updated 2018-08-09 02:25:43-04

The United States Postal Service has agreed to settle a case News 5 Investigates profiled on July 6.

Heather Allery mailed her husband’s Seiko watch off for repair back in February after it stopped working.

Somewhere between Colorado Springs and New Jersey, the watch vanished.

Allery purchased $400 worth of insurance for the watch, but USPS denied her claim because she didn’t have acceptable “proof of purchase”.

According to the post office, acceptable “proof of purchase” would include a sales receipt or credit/debit card statement showing how much the customer paid for the item.

Allery said the watch was a gift to her husband from his mother who passed away in 2014.

After her claim was denied, Allery contacted News 5 Investigates for help.

Lead investigative reporter Eric Ross began asking questions about the denied insurance claim back in May.

At first, the post office to us to have Allery re-file a claim, which Allery says she did.

After hearing nothing back, we followed up and were told to call a 1-800 domestic claims service line. The automated line would only tell us the claim was denied.

News 5 Investigates went to air with Allery’s story, hoping to expedite the claims process.

The day after our story aired, Allery advised us that the post office was sending her a check.

Monday, News 5 Investigates confirmed Allery was issued a check in the amount of $400.

Understanding the insurance claims process: 

-You have 60 days to file a loss/damage/theft claim with USPS

-Acceptable “proof of purchase” is required

-If your claim is denied, you have 30 days to file an appeal