UK: Mastercard again loses appeal against £14 billion class action lawsuit
Mastercard is facing a £14 billion class action lawsuit over exchange fees after a court rejected a failed appeal. If successful, 46 million claimants could receive £300 each.
On September 6, 2016, Merricks filed suit as a class action, made possible by the Consumer Rights Act of 2015. It seeks compensation of about £14 billion on behalf of 46 million people.
The Court of Appeals for Competition (CAT) rejected the claim in July 2017. The Court of Appeals reversed that decision. In December 2020, the Supreme Court rejected Mastercard's appeal, opening the way for a lawsuit over the UK's largest class action.
"It's been almost 12 years since Mastercard clearly stated that they broke the law by imposing excessive card transaction fees that harmed consumers over a long period of time," Merricks said. "When challenged, all they did was make technical legal arguments that turned out to have no merit, as the appeals court showed today. The time has come for Mastercard to acknowledge the damage caused, apologize to the British public, and agree to pay the compensation due."
In March 2022, CAT ruled that Walter Merricks could represent class members who were alive as of September 6, 2016 and have since died, and allowed him to invoke a higher interest rate of 5% above the current Bank of England rate. According to current estimates, this could add up to £2.7 billion to the £14 billion claim.
