Mastercard agrees to settle massive lawsuit over card fees in UK
- Mastercard faced a lawsuit for allegedly imposing excessive card fees on UK consumers, represented by Walter Merricks.
- The lawsuit involved approximately 46 million consumers and claimed damages of about 10 billion pounds.
- An agreement to settle was reached, with the settlement figure around 200 million pounds, pending tribunal approval.
In the United Kingdom, Mastercard recently reached an agreement in principle to settle a significant collective lawsuit concerning card fees. This lawsuit was initiated by consumer advocate Walter Merricks, representing approximately 46 million consumers who claimed damages related to excessive fees imposed by Mastercard. The case, which was the first mass consumer action approved in the UK, has been an extensive legal battle lasting nearly nine years, originating from a complaint filed in 2021 that underwent several judicial reviews, including scrutiny by the Competition Appeal Tribunal and the UK Supreme Court. The collective action stems from allegations that Mastercard charged excessive interchange fees, leading to inflated prices for consumers across various businesses. The claimants, backed by Merricks, contended that these fees collectively amounted to around 10 billion pounds. However, reports indicate that the actual settlement figure stands at approximately 200 million pounds, subject to final approval by the tribunal. This resolution comes as a significant turning point in the long-standing legal proceedings, which has been marked by rigorous litigation and hopes for meaningful compensation for impacted consumers. Merricks expressed satisfaction with the settlement, stating that he is hopeful it will provide important compensation for those who choose to come forward to receive damages. Mastercard’s spokesperson also emphasized the company’s desire to resolve the matter and move on from the drawn-out legal dispute. The court's approval of the agreement is pending, but the resolution to this case signifies a considerable development in consumer rights and corporate accountability in the UK. This lawsuit and its settlement spotlight the broader conversation around consumer protection regulations and corporate responsibility. It raises awareness about the mechanisms in place for group consumer actions and the importance of representatives like Merricks in advocating for the rights of millions of consumers. It remains to be seen how the settlement will impact Mastercard's operations and consumer trust moving forward, but it undoubtedly marks a milestone in consumer advocacy efforts within the financial services sector in the UK.