MILLIONS of Brits could be in line for a £300 payout after a landmark lawsuit against Mastercard on behalf of consumers was given the go ahead.
A judgement by the Supreme Court today means a £14billion lawsuit against the card company, which alleges people were overcharged for years, can proceed.
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The court dismissed an appeal by Mastercard to stop the case from being heard.
It’s too early to say if Brits will definitely receive a payout and whether it will be handed out automatically.
The legal claim is lead by Walter Merricks, a lawyer who once led the Financial Ombudsman Service, which handles consumer disputes with banks.
Mr Merricks alleges that more than 46million people in Britain over a 15-year period were overcharged between 1992 and 2008.
Will I get compensation from Mastercard?
LAWYER Walter Merricks is bringing a £14billion lawsuit against Mastercard over fears shoppers were overcharged between 1992 and 2008.
Today’s ruling doesn’t mean that Mastercard has to make a payout to consumers, but rather that the court case can go ahead.
If the courts rule in favour of Mr Merricks, all adults in the UK could receive a payment from the provider, regardless of whether they had a Mastercard.
Given Mr Merricks believes 46million people are affected, that’s around £300 each based on the £14billion claim.
A decision isn’t likely to be made any time soon.
He said: “Mastercard has been a sustained competition law breaker, imposing excessive card transaction charges over a prolonged period in a way it must have known would impose an invisible tax on UK consumers.”
Mastercard said in a statement: “Mastercard will be asking the Competition Appeal Tribunal (which will oversee the case) to avert the serious risk of the new collective action regime going down the wrong path with a case which is fundamentally flawed.”
Mr Merricks believes Mastercard wrongly levied fees on transactions made between May 22, 1992 and June 21, 2008.
These fees were paid by retailers accepting Mastercard payments, rather than by consumers themselves.
But Mr Merricks argues shoppers have lost out as retailers passed on these fees in the form of higher prices.
If Mr Merricks ultimately wins, everyone who made a transaction at a retailer that accepted Mastercard payments during this time frame could be entitled to a payout unless they explicitly refuse it.
Brits would be entitled to the payout without having any direct involvement with the trial and regardless of whether they had a Mastercard.
Given Mr Merricks believes 46million people are affected, that’s around £300 each based on the £14billion claim.
Today’s ruling means the case can now go to the Competition Appeal Tribunal, where it will make a decision on whether to proceed with a full trial, which will determine if Brits are due compensation.
The case has already been thrown out of the Competition Appeal Tribunal back in 2017 when it said it couldn’t decide on this type of case and would therefore not allow it to go to trial.
Mr Merricks then appealed to the Court of the Appeal, which ruled in his favour ruling the case could indeed be determined on by the Competition Appeal Tribunal.
At this point, Mastercard appealed the decision to the Supreme Court, and that appeal was dismissed today.
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Rocio Concha, Which? director of policy and advocacy, said: “This is a hugely important win for consumers.
“Which? has campaigned long and hard for an effective collective redress scheme and the Supreme Court’s ruling will increase access to justice for consumers and set the standard for collective claims of this nature to proceed to trial.
“From today, the route to collective redress will be fairer, simpler and more attainable, and many cases that are currently on hold will be able to proceed to trial, ensuring victims of anti-competitive behaviour can get the justice they deserve.”
Almost every adult in Britain could receive £300 windfall from Mastercard after landmark ruling
