Mailing costs may rise for bank 'skip-a-payment' and other similar notices.

Financial institutions that mail out skip-a-payment notices, convenience checks and pre-approved credit card or loan offers face the possibility of higher mailing costs in the future, according to a recent report in DM News.

The newspaper for direct marketers says that the U.S. Postal Service is considering a requirement that such direct mail pieces be classified as "first-class" rather than "standard," which would raise the cost of mailings by $88 per thousand.

The rationale for the change is that Postal Service regulations require that mail containing "actually and personal information" be classified as "first class." Direct mail pieces such as "skip-a-payment" usually contain personal account information, such as the monthly payment amount and loan number of the customer. The Postal Service has ruled in the case of at least one bank that "skip-a-payment" mail must pay first-class postage--even though it paid lower standard postage in the past.

One direct marketing agency was quoted as saying the ruling could add millions of dollars in extra postage expenses annually for financial institutions--which are the main businesses that would be affected by the ruling.