Mastercard has agreed to settle a long-running UK collective lawsuit concerning alleged excessive card fees. The case, initiated in 2016 by consumer advocate Walter Merricks, claimed Mastercard overcharged approximately 46 million adults in the United Kingdom over a 16-year period.
The lawsuit was the first mass consumer action to be certified in the UK, following a precedent-setting battle through the Competition Appeal Tribunal (CAT), the UK Supreme Court, and back to the CAT. The plaintiffs initially valued the claim at around £10 billion, but the settlement is believed to be closer to £200 million, according to sources familiar with the case.
During Tuesday's CAT proceedings, Mastercard and Merricks confirmed they had reached an agreement in principle to settle the case, pending approval from the tribunal.
Mastercard stated, “We are pleased to have reached an agreement in principle to put this case behind us.” Merricks, representing the claimant class, expressed satisfaction, saying, “After nearly nine years of litigation with Mastercard, I have agreed a settlement that I believe will deliver meaningful compensation to class members who choose to participate in the distribution of the damages.”
This case sets a significant precedent for collective legal actions in the UK, which have only been permissible since 2015.
