Call Kurtis: USPS Won't Pay For A Lost Package They Insured 14 Months Ago

ELK GROVE (CBS13) -- More than a year after the United States Postal Service insured and shipped his package, Eric Bush said the federal department still won't pay his insurance claim for lost mail.

He paid USPS for tracking and insurance on a parcel to buyer Italy.

It was only worth about $30, so Bush wasn't too worried -- but he doesn't understand why his insurance claim is being denied.

Bush is an avid collector of military and ceremonial ribbons -- formal awards worn on jackets to indicate achievement.

What's leftover of his collection he ships to buyers on eBay.

Bush is livid the Postal Service hasn't paid his $30 dollar claim after they admitted they can't track where it went.

"You don't accept it. You just don't roll over and accept all this crap," he said.

USPS tracking shows the package was last scanned in New York on December 22, 2011. A few months later, USPS told him "the postal service of Italy ... has no record of delivery for this article."

But the Postal Service rejected Bush's insurance claim saying the "package was delivered as addressed," which the buyer in Italy denied.

Bush said PayPal refunded the buyer in Italy, as USPS could not prove the package was delivered.

"I'm not gonna let them slide," he said.

Eric appealed, but in the eight months since he's heard absolutely nothing from the Postal Service.

USPS states online domestic claims are usually paid within 30 days, but the website does not mention international cases.

The BBB's Gary Almond said USPS is taking too long to investigate and should just pay the $30 claim.

"I think the burden of proof lies with the carrier," he said. "They would really have to do that in a reasonable period of time. I'm not sure that they've met that test."

A Postal Service spokesperson confirmed USPS was not sure what happened to the package after New York.

So why not just pay the claim?

"Investigations can take some time," USPS told CBS13. "If it didn't get delivered, and we can prove that it wasn't delivered, we will honor the claim."

After 14 months, Bush is tired of waiting.

"I'm more angry at the system than I am at my money," he said.

If Bush wanted to sue, he'd have to take his case to federal court, as the USPS is a federal agency and cannot be sued at the county or state levels.