3 days ago
Millions who were set to get up to £70 in compensation from Mastercard could now be waiting months for payment
MILLIONS of Brits who are eligible for compensation from Mastercard could be forced to wait months for the payment.
The credit card company has agreed to a £200million settlement which could mean you are owed
money
for purchases made years ago.
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Millions of people could be forced to wait months for compensation from Mastercard
Credit: AP:Associated Press
Around 47million customers could receive compensation of up to £70 each after a landmark legal victory in May.
But it could be months until the money is paid out.
This is because Innsworth is now trying to challenge how the funds will be shared, according to MoneySavingExpert.
Innsworth is a business that helps to fund legal claims, in exchange for a share of the winnings.
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But in this instance, Innsworth said the Tribunal that approved the settlement "made a series of errors in its judgement" when deciding how much of the money it should be given.
The company has now filed a legal claim called a judicial review to try and get a larger amount.
As a result of the new case, the launch of the online claims portal will be delayed, so payouts will also be pushed back.
Meanwhile, if Innsworth wins its case and gets more of the £200million, it could reduce the amount of money customers get.
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When was the legal challenge launched?
Walter Merricks, a former financial ombudsman, launched the legal claim in 2016.
He alleged that 46million British shoppers were ripped off after fees were wrongly levied on transactions made over a 15-year period between 1992 and 2008.
Retailers were charged fees by Mastercard to process card payments, and allegedly passed those costs on to customers through inflated prices.
Although Mastercard provided the technology for card payments, the case argued its fees led to the overcharging of customers.
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The settlement was approved in May and marked a big victory for consumer rights.
But it fell short of the settlement of up to £17billion that Merricks originally wanted.
MERRICKS VS MASTERCARD
2015
New rules under the UK's Consumer Rights Act 2015 mean collective claims can be made.
2016
Mr Merricks starts a lawsuit claiming that Mastercard overcharged shoppers.
2017
Mr Merricks' claim was dismissed by the Competition Appeal Tribunal (CAT), as was an application to appeal the decision.
2018
The Court of Appeal ruled that Mr Merricks be allowed to appeal the CAT decision.
2019
Mr Merricks' appeal was heard by the Court of Appeal and the decision was upheld.
Mastercard was then given permission to appeal that decision by the Supreme Court.
2020
After hearing the appeal, the Supreme Court dismissed it and ruled the case could go ahead.
2021
After hearing the case, the CAT ruled in Mr Merricks' favour.
2022
Mastercard's final challenge was dismissed in the Court of Appeal.
Late 2024
Mastercard and Merricks reach a proposed settlement.
2025
The Competition Appeal Tribunal is due to hear the settlement on February 19.
Spring 2025
The Competition Appeal Tribunal gave its final approval to the £200million settlement in the long running class action against Mastercard.
How much could I get?
The amount of compensation you will get depends on how many people file a claim.
It may now also depend on what share Innsworth walks away with.
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Of the £200million settlement, £100million has been earmarked for consumer payouts.
Experts at MoneySavingExpert predict that if just 5% of eligible individuals claim, the payouts could be up to £70.
But if more people apply, the payout could fall to around £45.
The remaining £100million has been set aside for legal costs and other expenses.
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Am I eligible?
You do not need to have ever used a Mastercard to qualify for the compensation.
This is because the claim argues that all shoppers were affected by the inflated prices, regardless of how they paid.
To qualify for the compensation, you need to match the following criteria:
You lived in the UK (England, Wales or Northern Ireland) for at least three consecutive months between June 20, 1997, and June 21, 2008. For those who lived in Scotland, the period extends from May 22, 1992, to June 21, 2008.
You were aged 16 or over during the relevant period.
You purchased goods or services in the UK during this time for non-business purposes. You won't need to provide proof of purchase.
You were still living in the UK on September 6, 2016 (when the claim was filed).
How do I make a claim?
An online claims portal is expected to launch in the coming months on the Mastercard Consumer Claim website, which is managed by legal services firm Epiq.
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Those who think they have been affected will have several months to make their claim online.
The process should be straightforward and will require you to confirm your eligibility and give basic personal information such as your date of birth, address and bank details.
No supporting documentation will be required.
If you are deemed eligible then Mastercard is expected to issue payments within 28 days.
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Individuals will have until the end of 2025 to submit their claims.
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