Mastercard settles collective consumer claim over UK card fees
Payments giant Mastercard has reached an agreement in principle to settle a collective consumer claim brought forward by ex-financial services ombudsman Walter Merricks on behalf of around 45.5 million UK consumers over interchange fees, subject to the approval of the Competition Appeal Tribunal (CAT).
Mastercard settles UK card fee case
The claim, first lodged in 2016, alleged that the company had overcharged on interchange fees in the UK between 1992 and 2008.
According to a tribunal filing in October, the claimants had originally sought around £10 billion in total compensation. However, Reuters reported last week that an agreement in principle has been made for a £200 million settlement, citing a person familiar with the agreement.
“We are pleased to have reached an agreement in principle to put this case behind us,” a spokesperson from Mastercard says.
“As the tribunal reviews the settlement, we will focus our energy on continuing to provide consumers and businesses with what they expect from Mastercard – a great payments experience, strong value and peace of mind.”
In a statement, Merricks says: “I am very pleased that after nearly 9 years of litigation with Mastercard, I have agreed a settlement that I believe will deliver meaningful compensation to class members who choose to come forward to participate in the distribution of the damages.
“Ever since I began my claim I have aimed to ensure that the new regime for collective redress can be seen to work effectively and to do that I had to take my case to the Supreme Court. I now look forward to presenting the details of the settlement to the tribunal for its consideration and approval.”
