The UK Competition Appeal Tribunal has approved a £200 million settlement between Mastercard and former Financial Ombudsman Walter Merricks, concluding a landmark class action lawsuit. The case, initiated in 2016, alleged that Mastercard’s interchange fees between 1992 and 2008 unlawfully inflated prices for UK consumers. Although the settlement is a fraction of the original £10 billion claim, it marks a significant development in UK consumer rights litigation.
Under the terms of the settlement, approximately 47 million UK consumers who made purchases from businesses accepting Mastercard during the specified period are eligible for compensation. The payout is structured to provide up to £70 per claimant, contingent on the number of individuals who come forward. The first £100 million is earmarked for consumer compensation, with the remaining funds allocated to cover legal and administrative costs.
Despite the settlement’s approval, litigation funder Innsworth Capital, which supported the case, contested the amount, arguing it was disproportionately low compared to the original claim value. The tribunal upheld the settlement, stating it was a fair and just outcome for consumers.
Eligible consumers can register for compensation through the official Mastercard Consumer Claim website. The deadline for claims is set for the end of 2025.
This case underscores the evolving landscape of class action litigation in the UK and highlights the importance of consumer protection in financial services.
