diff --git a/app/__init__.py b/app/__init__.py
index 4daf81b80..bffed68b2 100644
--- a/app/__init__.py
+++ b/app/__init__.py
@@ -356,6 +356,22 @@ def format_delta(date):
     )
 
 
+def format_delta_days(date):
+    now = datetime.now(timezone.utc)
+    date = utc_string_to_aware_gmt_datetime(date)
+    delta = now - date
+    if date.strftime('%Y-%M-%D') == now.strftime('%Y-%M-%D'):
+        return "today"
+    if date.strftime('%Y-%M-%D') == (now - timedelta(days=1)).strftime('%Y-%M-%D'):
+        return "yesterday"
+    return ago.human(
+        delta,
+        precision=1,
+        future_tense='{} from now',
+        past_tense='{} ago',
+    )
+
+
 def valid_phone_number(phone_number):
     try:
         validate_phone_number(phone_number)
@@ -744,6 +760,7 @@ def add_template_filters(application):
         format_date_short,
         format_datetime_relative,
         format_delta,
+        format_delta_days,
         format_notification_status,
         format_notification_type,
         format_notification_status_as_time,
diff --git a/app/models/service.py b/app/models/service.py
index c7b3f2737..132ac157c 100644
--- a/app/models/service.py
+++ b/app/models/service.py
@@ -1,4 +1,8 @@
+from datetime import datetime, timedelta
+
+from dateutil.parser import parse
 from flask import abort, current_app
+from notifications_utils.timezones import local_timezone
 from werkzeug.utils import cached_property
 
 from app.models import JSONModel
@@ -670,3 +674,24 @@ class Service(JSONModel):
     @cached_property
     def returned_letter_summary(self):
         return service_api_client.get_returned_letter_summary(self.id)
+
+    @property
+    def most_recent_returned_letter_report(self):
+        if not self.returned_letter_summary:
+            return None
+        return parse(
+            self.returned_letter_summary[0]['reported_at'] + " 00:00:00"
+        ).replace(tzinfo=local_timezone)
+
+    @property
+    def count_of_returned_letters_in_last_7_days(self):
+        seven_days_ago = (
+            datetime.now() - timedelta(days=7)
+        ).replace(
+            hour=0, minute=0, second=0
+        )
+        return sum(
+            report['returned_letter_count']
+            for report in self.returned_letter_summary
+            if parse(report['reported_at'] + " 00:00:00") >= seven_days_ago
+        )
diff --git a/app/templates/views/dashboard/_inbox.html b/app/templates/views/dashboard/_inbox.html
index 57a9d85b6..ebcd6fb84 100644
--- a/app/templates/views/dashboard/_inbox.html
+++ b/app/templates/views/dashboard/_inbox.html
@@ -17,4 +17,17 @@
       {% endif %}
     </a>
   {% endif %}
+  {% if current_service.returned_letter_summary %}
+    <a id="total-returned-letters" class="banner-dashboard" href="{{ url_for('main.returned_letter_summary', service_id=current_service.id) }}">
+      <span class="banner-dashboard-count">
+        {{ current_service.count_of_returned_letters_in_last_7_days|format_thousands }}
+      </span>
+      <span class="banner-dashboard-count-label">
+        returned {{ message_count_label(current_service.count_of_returned_letters_in_last_7_days, 'letter', suffix='') }}
+      </span>
+      <span class="banner-dashboard-meta">
+        latest report {{ current_service.most_recent_returned_letter_report|format_delta_days }}
+      </span>
+    </a>
+  {% endif %}
 </div>
diff --git a/tests/app/main/views/test_accept_invite.py b/tests/app/main/views/test_accept_invite.py
index cbd280ffe..b00b4209b 100644
--- a/tests/app/main/views/test_accept_invite.py
+++ b/tests/app/main/views/test_accept_invite.py
@@ -149,6 +149,7 @@ def test_accepting_invite_removes_invite_from_session(
     mock_get_billable_units,
     mock_get_free_sms_fragment_limit,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     fake_uuid,
     user,
     landing_page_title,
@@ -470,6 +471,7 @@ def test_new_invited_user_verifies_and_added_to_service(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     mock_create_event,
     mocker,
 ):
diff --git a/tests/app/main/views/test_dashboard.py b/tests/app/main/views/test_dashboard.py
index fd95ee7b9..0aafafb88 100644
--- a/tests/app/main/views/test_dashboard.py
+++ b/tests/app/main/views/test_dashboard.py
@@ -143,7 +143,8 @@ def test_get_started(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     mocker.patch(
         'app.template_statistics_client.get_template_statistics_for_service',
@@ -167,7 +168,8 @@ def test_get_started_is_hidden_once_templates_exist(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     mocker.patch(
         'app.template_statistics_client.get_template_statistics_for_service',
@@ -184,6 +186,7 @@ def test_get_started_is_hidden_once_templates_exist(
 
 def test_inbound_messages_not_visible_to_service_without_permissions(
     client_request,
+    mocker,
     service_one,
     mock_get_service_templates_when_no_templates_exist,
     mock_get_jobs,
@@ -191,7 +194,8 @@ def test_inbound_messages_not_visible_to_service_without_permissions(
     mock_get_template_statistics,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
 
     service_one['permissions'] = []
@@ -216,6 +220,7 @@ def test_inbound_messages_shows_count_of_messages_when_there_are_messages(
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     service_one['permissions'] = ['inbound_sms']
     page = client_request.get(
@@ -242,6 +247,7 @@ def test_inbound_messages_shows_count_of_messages_when_there_are_no_messages(
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
     mock_get_inbound_sms_summary_with_no_messages,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     service_one['permissions'] = ['inbound_sms']
     page = client_request.get(
@@ -472,6 +478,126 @@ def test_download_inbox_strips_formulae(
     assert expected_cell in response.get_data(as_text=True).split('\r\n')[1]
 
 
+def test_returned_letters_not_visible_if_service_has_no_returned_letters(
+    client_request,
+    mocker,
+    service_one,
+    mock_get_service_templates_when_no_templates_exist,
+    mock_get_jobs,
+    mock_get_service_statistics,
+    mock_get_template_statistics,
+    mock_get_usage,
+    mock_get_free_sms_fragment_limit,
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
+):
+    page = client_request.get(
+        'main.service_dashboard',
+        service_id=SERVICE_ONE_ID,
+    )
+    assert not page.select('#total-returned-letters')
+
+
+@freeze_time('2020-01-10')
+def test_returned_letters_shows_count_of_recently_returned_letters(
+    client_request,
+    mocker,
+    service_one,
+    mock_get_service_templates_when_no_templates_exist,
+    mock_get_jobs,
+    mock_get_service_statistics,
+    mock_get_template_statistics,
+    mock_get_usage,
+    mock_get_free_sms_fragment_limit,
+    mock_get_inbound_sms_summary,
+):
+    mocker.patch(
+        'app.service_api_client.get_returned_letter_summary',
+        return_value=[
+            # Today (should be counted)
+            {
+                'returned_letter_count': 1000, 'reported_at': '2020-01-10'
+            },
+            # Just within the last 7 days (should be counted)
+            {
+                'returned_letter_count': 3000, 'reported_at': '2020-01-3'
+            },
+            # Just after the last 7 days (should not be counted)
+            {
+                'returned_letter_count': 2000, 'reported_at': '2020-01-2'
+            },
+        ],
+    )
+    page = client_request.get(
+        'main.service_dashboard',
+        service_id=SERVICE_ONE_ID,
+    )
+    banner = page.select_one('#total-returned-letters')
+    assert normalize_spaces(
+        banner.text
+    ) == '4,000 returned letters latest report today'
+    assert banner['href'] == url_for(
+        'main.returned_letter_summary', service_id=SERVICE_ONE_ID
+    )
+
+
+@pytest.mark.parametrize('reporting_date, expected_message', (
+    ('2020-02-02', (
+        '1 returned letter latest report today'
+    )),
+    ('2020-02-01', (
+        '1 returned letter latest report yesterday'
+    )),
+    ('2020-01-31', (
+        '1 returned letter latest report 2 days ago'
+    )),
+    ('2020-01-26', (
+        '1 returned letter latest report 7 days ago'
+    )),
+    ('2020-01-25', (
+        '0 returned letters latest report 8 days ago'
+    )),
+    ('2019-09-09', (
+        '0 returned letters latest report 146 days ago'
+    )),
+    ('2010-10-10', (
+        '0 returned letters latest report 9 years ago'
+    )),
+))
+@freeze_time('2020-02-02')
+def test_returned_letters_only_counts_recently_returned_letters(
+    client_request,
+    mocker,
+    service_one,
+    mock_get_service_templates_when_no_templates_exist,
+    mock_get_jobs,
+    mock_get_service_statistics,
+    mock_get_template_statistics,
+    mock_get_usage,
+    mock_get_free_sms_fragment_limit,
+    mock_get_inbound_sms_summary_with_no_messages,
+    reporting_date,
+    expected_message,
+):
+    mocker.patch(
+        'app.service_api_client.get_returned_letter_summary',
+        return_value=[
+            {
+                'returned_letter_count': 1, 'reported_at': reporting_date
+            },
+        ],
+    )
+    page = client_request.get(
+        'main.service_dashboard',
+        service_id=SERVICE_ONE_ID,
+    )
+    banner = page.select_one('#total-returned-letters')
+    assert normalize_spaces(banner.text) == expected_message
+    assert banner['href'] == url_for(
+        'main.returned_letter_summary', service_id=SERVICE_ONE_ID
+    )
+
+
 def test_should_show_recent_templates_on_dashboard(
     client_request,
     mocker,
@@ -480,7 +606,8 @@ def test_should_show_recent_templates_on_dashboard(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     mock_template_stats = mocker.patch('app.template_statistics_client.get_template_statistics_for_service',
                                        return_value=copy.deepcopy(stub_template_stats))
@@ -534,6 +661,7 @@ def test_should_not_show_recent_templates_on_dashboard_if_only_one_template_used
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     stats,
 ):
     mock_template_stats = mocker.patch(
@@ -687,7 +815,8 @@ def test_should_show_upcoming_jobs_on_dashboard(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     page = client_request.get(
         'main.service_dashboard',
@@ -738,6 +867,7 @@ def test_correct_font_size_for_big_numbers(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     service_one,
     permissions,
     totals,
@@ -773,7 +903,8 @@ def test_should_show_recent_jobs_on_dashboard(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     page = client_request.get(
         'main.service_dashboard',
@@ -981,6 +1112,7 @@ def test_menu_send_messages(
     mock_get_usage,
     mock_get_inbound_sms_summary,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     service_one['permissions'] = ['email', 'sms', 'letter', 'upload_letters']
 
@@ -1039,6 +1171,7 @@ def test_menu_manage_service(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     mock_get_free_sms_fragment_limit,
 ):
     with app_.test_request_context():
@@ -1070,6 +1203,7 @@ def test_menu_manage_api_keys(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     mock_get_free_sms_fragment_limit,
 ):
     with app_.test_request_context():
@@ -1099,6 +1233,7 @@ def test_menu_all_services_for_platform_admin_user(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     mock_get_free_sms_fragment_limit,
 ):
     with app_.test_request_context():
@@ -1130,7 +1265,8 @@ def test_route_for_service_permissions(
     mock_get_service_statistics,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     with app_.test_request_context():
         validate_route_permission(
@@ -1183,7 +1319,8 @@ def test_service_dashboard_updates_gets_dashboard_totals(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
-    mock_get_inbound_sms_summary
+    mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     mocker.patch('app.main.views.dashboard.get_dashboard_totals', return_value={
         'email': {'requested': 123, 'delivered': 0, 'failed': 0},
@@ -1368,6 +1505,7 @@ def test_should_show_all_jobs_with_valid_statuses(
     mock_get_jobs,
     mock_get_usage,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     mock_get_free_sms_fragment_limit,
 ):
     logged_in_client.get(url_for('main.service_dashboard', service_id=SERVICE_ONE_ID))
@@ -1397,6 +1535,7 @@ def test_org_breadcrumbs_do_not_show_if_service_has_no_org(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     page = client_request.get('main.service_dashboard', service_id=SERVICE_ONE_ID)
 
@@ -1411,6 +1550,7 @@ def test_org_breadcrumbs_do_not_show_if_user_is_not_an_org_member(
     active_caseworking_user,
     client_request,
     mock_get_template_folders,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     # active_caseworking_user is not an org member
 
@@ -1433,6 +1573,7 @@ def test_org_breadcrumbs_show_if_user_is_a_member_of_the_services_org(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     active_user_with_permissions,
     client_request,
 ):
@@ -1460,6 +1601,7 @@ def test_org_breadcrumbs_do_not_show_if_user_is_a_member_of_the_services_org_but
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     active_user_with_permissions,
     client_request,
 ):
@@ -1484,6 +1626,7 @@ def test_org_breadcrumbs_show_if_user_is_platform_admin(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     platform_admin_user,
     platform_admin_client,
 ):
@@ -1515,6 +1658,7 @@ def test_should_show_usage_on_dashboard(
     mock_get_jobs,
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
+    mock_get_returned_letter_summary_with_no_returned_letters,
     permissions,
 ):
     service_one['permissions'] = permissions
diff --git a/tests/app/main/views/test_sign_out.py b/tests/app/main/views/test_sign_out.py
index 12e93f33b..2d1be4c2f 100644
--- a/tests/app/main/views/test_sign_out.py
+++ b/tests/app/main/views/test_sign_out.py
@@ -31,6 +31,7 @@ def test_sign_out_user(
     mock_get_usage,
     mock_get_free_sms_fragment_limit,
     mock_get_inbound_sms_summary,
+    mock_get_returned_letter_summary_with_no_returned_letters,
 ):
     with client_request.session_transaction() as session:
         assert session.get('user_id') is not None
diff --git a/tests/conftest.py b/tests/conftest.py
index dfa844724..f08fd2d9c 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -3342,6 +3342,14 @@ def mock_get_service_history(mocker):
     })
 
 
+@pytest.fixture(scope='function')
+def mock_get_returned_letter_summary_with_no_returned_letters(mocker):
+    return mocker.patch(
+        'app.service_api_client.get_returned_letter_summary',
+        return_value=[],
+    )
+
+
 def create_api_user_active(with_unique_id=False):
     return {
         'id': str(uuid4()) if with_unique_id else sample_uuid(),