UK Court Approves $200M Mastercard Settlement in Class Action Lawsuit

The UK’s Competition Appeal Tribunal has approved Mastercard’s £200 million ($200 million) settlement in a class action lawsuit filed on behalf of British consumers over credit card fees.

The legal battle, led by Walter Merricks, a former head of the UK Financial Ombudsman Service, alleged that Mastercard overcharged consumers through excessive interchange fees. Initially filed in 2016, the lawsuit sought compensation for millions of UK residents affected by these charges.

Although the claim was originally valued at around £10 billion, litigation funder Innsworth Advisors challenged the settlement, arguing that it significantly undervalued the compensation owed to consumers. Despite this, the tribunal ruled in favor of the agreement, deeming it “just and reasonable” while acknowledging that the final amount was “very disappointing” compared to the original claim.

Speaking on the settlement, Merricks stated, “I am very pleased that after nearly nine years of litigation with Mastercard, I have agreed to a settlement that I believe will deliver meaningful compensation to class members who choose to participate in the distribution of the damages.”

With the settlement now approved, eligible consumers will be able to claim compensation, bringing an end to one of the UK’s largest collective legal actions against a financial institution.