Mastercard’s £200 million settlement of a class action lawsuit on behalf of British consumers has been approved by the Competition Appeal Tribunal, potentially allowing millions of shoppers to receive up to £70 each.
In December, Mastercard reached an agreement with Walter Merricks, the case’s representative, to resolve the long-standing litigation concerning credit card fees affecting tens of millions of Brits. However, the litigation funder, Innsworth Advisors, contested the settlement, arguing that it severely undervalued the claim, originally estimated to be around £10 billion.
Merricks, former head of the UK Financial Ombudsman Service, initiated the lawsuit in 2016, alleging that Mastercard overcharged UK consumers for credit card interchange fees between 1992 and 2008. Those who lived in England, Wales, Scotland, or Northern Ireland for at least three months during that period and made purchases from UK businesses accepting Mastercard credit cards are eligible to claim.
If 2.5 million people participate, they will each receive £45; if the number of claimants is lower, payments will be capped at £70. After initially supporting Merricks, Innsworth has since disagreed with him regarding the decision to accept the settlement.
In a recent statement, Merricks expressed, “Not only have I had to fight Mastercard, but I also had to fight Innsworth Capital. They sought to prevent me from settling when I believed it was in the best interests of my class, threatening legal action against me personally, which could have led to my bankruptcy.”
Innsworth criticized the settlement as an “extraordinarily low proportion” of the original claim, suggesting it might discourage future claims.