Mastercard Settlement Faces Challenge in Landmark Consumer Case

A groundbreaking settlement in the long-running legal battle against payments company Mastercard is facing scrutiny from a funder involved in the case, according to Law Gazette. The claim, led by former financial ombudsman Walter Merricks CBE, sought to recover £17 billion on behalf of an estimated 46 million UK consumers over allegations of excessive transactional fees.

The lawsuit, which was greenlit by the Supreme Court in 2020, marked a significant step in collective redress for consumers. However, late yesterday, news emerged that a settlement agreement had been reached, which could provide compensation worth between £40 and £50 to each consumer who participates, as stated by Boris Bronfentrinker, a partner at Willkie Farr & Gallagher and Merricks’ legal representative.

In a statement issued this morning, Merricks expressed satisfaction with the settlement after nearly a decade of litigation. “I am very pleased that after nearly nine years of litigation with Mastercard, I have agreed a settlement that I believe will deliver meaningful compensation to class members who chose to come forward to participate in the distribution of the damages,” Merricks said. He highlighted the significance of the case in demonstrating the effectiveness of the UK’s collective redress regime and added that he looks forward to presenting the settlement details to the Competition Appeal Tribunal for approval.

Read more: EU Probes Visa and Mastercard Over Impact of Payment Fees on Retailers

Mastercard Settlement Faces Challenge in Landmark Consumer Case

Mastercard, meanwhile, also expressed contentment with the agreement. “We are pleased to have reached an agreement in principle to put this case behind us,” a spokesperson said, emphasizing that the company remains focused on delivering a seamless and secure payment experience for its customers.

Despite the progress, Law Gazette reports that the settlement already faces a https://www.lawgazette.co.uk/news/funder-to-challenge-premature-mastercard-case-settlement/5121721.articlechallenge from a funder connected to the case, potentially complicating the resolution of the matter. The Tribunal’s review of the settlement will determine the outcome and set a precedent for similar mass consumer claims in the UK.

Source: Law Gazette