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UK court approves $200m Mastercard settlement

Mastercard's £200 million settlement of a class action lawsuit brought on behalf of British consumers has been given the greenlight by the Competition Appeal Tribunal.

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UK court approves $200m Mastercard settlement

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

In December, Mastercard reached a deal with the man behind the case, Walter Merricks, to settle the years-long litigation, which was brought on behalf of tens of millions of Brits over credit card fees.

However, the litigation funder Innsworth Advisors, challenged the settlement saying that it undervalued the claim. Initially, the case was estimated to be worth around £10 billion.

The Competition Appeal Tribunal has now approved the settlement, calling it "just and reasonable" even if "very disappointing" compared to the original claim.

Merricks, the former head of the UK Financial Ombudsman Service, filed the suit in 2016, accusing Mastercard of overcharging Brits for credit card interchange fees.

In December, he said: “I am very pleased that after nearly nine years of litigation with Mastercard, I have agreed to 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.”

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Comments: (1)

A Finextra member 

Ten billion GBP estimation and is settling for 200 mill GBP. It is a 200 mill success level or 2%.  How are the "spoils" to be distributed among the 69 million brits?  The gross is 2,90 pounds per inhabitant in the UK. The Mastercard profit post tax in 2024 was roughly 10 bill GBP so it takes them one week to earn the settlement amount.  Likely the processing costs have eaten the majority of the settlement amount and enriched a group of solicitors. 

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