Mastercard To Face UK’s Largest Class Action Over Fees
On Wednesday, a UK court approved a £10 billion plus class action against global payments processor Mastercard. Claimants have said the class action could entitle 46 million British citizens to approximately £300 pounds each if it is successful.
The lawsuit, which was brought by former financial ombudsman Walter Merricks, was previously rejected by the Competition Appeal Tribunal (CAT). However, last Wednesday, the CAT authorised the landmark case which alleges Mastercard charged excessive “interchange” fees between May 1992 and June 2008. Mr Merrick’s case claims that these fees were passed on to the consumers as retailers increased their prices.
The case is being brought on behalf of all people aged between 16 and above who purchased goods and services from a UK business that accepted Mastercard between the aforementioned dates, unless they opt out of the suit. Mr Merricks had hoped to expand the scope of the case to include compound interest and the estates of the deceased to the claim. However, this was rejected by UK judges.
In a statement, Mastercard said it was “confident that over the coming months a review of key facts will further significantly reduce the size and viability of the claim.”