EVERYONE could get £300 after MasterCard is taken to court over ‘unfair charges’
Collective action could see consumers reimbursed for unlawfully high interchange fees in place for 16 years
NEARLY 46million British credit card users could be gifted £304 following legal action against MasterCard’s £14billion in “unfair charges”.
Collective action launched on Thursday accuses the company of selling punitive transaction fees for retailers from 1992 to 2008, which were passed onto shoppers in the form of higher prices.
Anyone living the UK, as long as they are over the age of 18, could be in line for a payout.
The original claim worked out at £450 each, but when lawyers filed the case at the Competition Appeal Tribunal the amount they were asking for dropped down to around £304 per person.
Any consumers no longer living in the UK, but who resided here between 1992 and 2008 will have the chance to opt in to any collective claims.
Led by former financial services ombudsman Walter Merricks and aided by American law firm Quinn Emanuel, the claim has been filed at the Competition Appeal Tribunal in London under the Consumer Rights Act 2015.
Speaking on the event, MasterCard said: “Now that the claim has been filed, we will take time to review it in detail, however we continue to firmly disagree with the basis of this claim and we intend to oppose it vigorously.
“We deliver real value through the benefits of security, convenience and consumer protection, and we are committed to investing in our payment services in order to continue to meet the rapidly evolving needs of all our customers.”
The claimants say MasterCard enforced unlawfully high interchange fees for 16 years.
'We continue to firmly disagree with the basis of this claim and we intend to oppose it vigorously'
MasterCard
These fees were passed on to all customers in the form of inflated prices for goods and services.
In 2014, the European Court of Justice ruled such fees a violation of EU anti-trust rules.
Speaking on his claim, Mr Merricks said: “MasterCard charged billions of pounds of unlawfully high fees for its sole benefit and to the detriment of consumers.
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“It has already been found to have broken competition law, the basis of which was to protect consumers, and that cannot be disputed.
“The filing of this claim is the first step towards consumers obtaining compensation for what MasterCard did.
“I am confident that the CAT will authorise the claim to go forward, and I look forward to the opportunity to present our case.
“This is a watershed moment for consumer redress in this country.”
Meanwhile, Boris Bronfentrinker, a partner at Quinn Emanuel, said: “MasterCard has itself argued before English courts that any unlawful charges were passed on to consumers by retailers when trying to defend itself in cases brought against it by retailers.
“Despite arguing that consumers bore the cost of its illegal fees, MasterCard has made no efforts to try to compensate consumers through new voluntary compensation mechanisms.”
'This is a watershed moment for consumer redress in this country'
Unless MasterCard decide to settle out of court, a hearing on the case is not expected until early 2018, following a trial.
If the claim is successful, it could take between two and three further years for the compensation to be paid out, and customers would be required to lodge all claims within a set time period.
However, there is no guarantee of when or who this will happen.
Walter Merricks continued: “It will be a simple process for consumers to get compensation without using claim management companies.”
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