Millions of shoppers awaiting compensation following a landmark legal battle against Mastercard have received an update this week. Walter Merricks, a former financial ombudsman, contended that 46 million consumers were overcharged after fees were improperly imposed on transactions between 1992 and 2008.
The charges were borne by retailers accepting Mastercard payments, rather than by shoppers directly - meaning you don't necessarily need to have held a Mastercard to qualify for compensation.
Claim amounts and eligibility
It is estimated that approximately 2.3 million people are expected to come forward to claim, with £100million set aside for consumers. Should this occur, each individual would receive £45. If fewer people than anticipated claim, the maximum each person will receive is £70.
You may be entitled to a payment if you resided in England, Wales or Northern Ireland for a minimum of three months between June 1997 and June 2008, and purchased goods or services from UK businesses that accepted Mastercard credit cards. For those living in Scotland, the qualifying period begins in May 1992.
Portal delay and update
However, consumers have not yet been able to submit their details, as the online claims portal was postponed following a legal challenge. But in an update this week, Mr Merricks announced that the legal claims have now been withdrawn, and anyone affected will be able to begin the process of claiming compensation by the end of this year.
He said: "This finally opens the way for me to prepare for distribution of at least £100m to consumers. This is presently the largest amount ever secured from group litigation for the benefit of UK consumers."
Mr Merricks added: "When we are ready to launch (which will be in the coming months) there will be a nation-wide publicity campaign to alert people and a 6-month period during which people will be able to register their claim."
Payment details
The £100m will be divided equally between the people who claim, and the expectation is that consumers should get a minimum of £45, which could rise to as much as £70 depending on the numbers that claim. So for a couple this could be between £90 and £140.
Mr Merricks confirmed that payments will be issued once the six-month registration period concludes, which is anticipated to be in the first half of 2027. Recipients will have the option of receiving the money directly into their bank account or via a gift voucher sent to them by email. He is also looking into providing consumers with the opportunity to donate their payment to a charity of their choice.
