Millions of consumers awaiting refunds following a significant legal case against Mastercard received an update this week. Walter Merricks, a former financial ombudsman, contended that 46 million shoppers were overcharged due to improper fees on transactions between 1992 and 2008. These fees were borne by merchants accepting Mastercard payments rather than by the customers themselves, making eligibility for compensation not limited to Mastercard holders.
Approximately 2.3 million individuals are projected to file claims, with £100 million set aside for affected consumers. Each claimant could receive £45 if the anticipated number of claimants come forward. However, if fewer people claim, the maximum compensation per person would be £70.
Despite a delay in the online claims portal due to a legal dispute, Mr. Merricks announced this week that the legal challenges have been resolved. Affected individuals will be able to initiate the compensation claims process by the end of the year. Mr. Merricks highlighted that this development paves the way for distributing over £100 million to consumers, the largest sum ever obtained from group litigation for the benefit of UK consumers.
He specified that a nationwide publicity campaign will be launched in the upcoming months to inform people about the claims process. The £100 million will be evenly distributed among claimants, with an expected minimum payout of £45, potentially increasing to £70 depending on the total number of claims. For couples, this could mean a combined payout ranging between £90 and £140.
Payments are scheduled to be disbursed after the six-month claim registration period ends in the first half of 2027. Recipients can choose to receive the funds directly into their bank accounts or opt for a gift voucher delivered via email. Additionally, there may be an option for consumers to donate the compensation to charity.
To be eligible for compensation, individuals must have resided in England, Wales, or Northern Ireland for at least three months between June 1997 and June 2008, and made purchases from UK businesses accepting Mastercard credit cards during that period. In Scotland, eligibility dates back to May 1992.
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