£14 billion class action lawsuit adjacent to MasterCard over interchange fees is back. It is back again following the Court of appeal approved permission to challenge a past pronouncement to dismiss the case. In September 2016, Walter Merricks, the former Financial Ombudsman launched legal action aligned with the card provider. He claimed damages on behalf of 46 million consumers.
All about the case
The case was launched in 2016 September by Walter Merricks and concerns losses which were suffered because of card fees which MasterCard charged businesses. These card fees were charged to accept payments from consumers also known as interchange fees. As per Mr. Merricks, these businesses passed on the costs of consumers by rising prices in the 16 years to 2008. Earlier The Court of Appeal set aside the past decision asserting that the last ruling has errors of law. At the same time as this ruling has not established any liability adjacent to MasterCard, however, will permit the legal action against the company to proceed.
This CASE BY Merricks is the first mass consumer claim, as a new rule concerning collective action was introduced under the Consumer Rights Act 2015. The person representing Mr. Merricks, Boris Bronfentrinker of Quinn Emanuel Urquhart & Sullivan, also alleged that ‘The Court of Appeal’s decision marks an important day for collective action system in the country, following numerous false starts before the Competition Appeal Tribunal.’
Mr. Merricks reaction
After today’s judgment, Mr. Merricks alleged ‘ I am very pleased with current judgment as its about 12 years since MasterCard was clearly told that it had broken the law by imposing excessive card transaction charges, harmed consumers over an extended period’. He also said ‘as a result, we all have to pay higher prices in shops than we should have, while the company has pocketed the profits. Since then it has nothing to apologize, let alone to pay back the money it wrongly caused us to pay out’.
On the other hand, MasterCard spokesman alleged that the company carried out to ‘disagree fundamentally’ with the base of the claim. The firm also cleared by saying that ‘this judgment is not a final decision and the proposed claim is not approved to go forward. Instead, the court merely supposed a rehearing of specific matters, which should be done’.
This new ruling does not mean that consumers will for sure get their compensation, but proceedings can be now being claimed against MasterCard. Also, if this lawsuit is successful, then £14bn would be divided among 48 million consumers, and it will then amount £300 each.
