By John Smith • 19 August 2021 • 14:11
Mastercard to contest class action
Credit: Kārlis Dambrāns flickr
HAVING now lost a final appeal against the validity of the claim, Mastercard is being sued for £10 billion in first UK class action.In 2007, the European Commission declared that Mastercard’s multi-lateral interchange fees were anti-competitive.
These are fees paid by businesses when transactions are made using a Mastercard, which the Commission decided resulted in higher prices being charged to consumers.
The then UK Chief Financial Ombudsman Walter Merricks considered that there was clear evidence that British cardholders had suffered to the tune of some £14 billion (€16 billion) between 1992 and 2008.
Since 2015, he has been battling to bring what is known in the USA as a class action whereby consumers do not have to be named individually and this right was granted in the 2015 Consumer Act.
Understandably Mastercard have attempted to block this case and have been successful in various UK courts but now, the Supreme Court has ruled in favour of bringing this class action to court saying that the Competition Appeal Tribunal had been wrong in rejecting the claim in the first instance.
The action has been changed in as much as it no longer includes claims on behalf of the deceased but is said to be worth around £10 billion (€11.5 billion) and if the action is successful refunds could be expected by around 46 million consumers who probably aren’t even aware of the case itself.
Mastercard will be contesting the claim according to a report by City AM and observed “This claim isn’t being brought by UK consumers, but is being driven by lawyers, backed by organisations primarily focused on making money for themselves.”
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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica.
Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene.
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