A major lawsuit against credit card company Mastercard in the United Kingdom may proceed. Former British financial ombudsman, Walter Merricks, may sue the American company for excessive fees charged by Mastercard to its customers, the Financial Times reported on Thursday. On behalf of 46 million Britons, Walter Merricks claims 14 billion pounds from Mastercard, converted more than 16 billion euros.
–
According to the Financial Times, it is the largest class action or group claim ever in the UK. It is also the first under the Consumer Protection Act of 2015. The aim of that legislation was to compensate individuals and small businesses in the event of anti-competitive behaviour.
The case stems from a 2007 investigation by the European Commission, which ultimately ruled that Mastercard overcharged for payments with its credit cards. Mastercard was fined EUR 570 million in early 2019. Visa was also penalized at the time.
Merricks can now claim damages for all Britons aged 16 and over who made a purchase with their Mastercard at a store in the United Kingdom between 1992 and 2008. Claims from Britons who have died in the meantime cannot be taken into account, the judge ruled. There is not yet a date when the case can start.
Mastercard previously tried to have the lawsuit banned, but at the end of last year it came to blows in the highest British court. The company is satisfied with the fact that deceased Britons are now excluded and the final claim is therefore a lot lower than originally thought. “Mastercard is confident that a review of the facts in the coming months will lead to a further significant reduction in the claim,” the company said.
–
