Latest news with #WalterMerricks
North Wales Chronicle
5 days ago
- Business
- North Wales Chronicle
Martin Lewis on the 'staggering' £70 Mastercard payout
Millions are set to receive up to £70 each following the Competition Appeal Tribunal final approval, following a landmark class action against Mastercard, which dates back to 2016. Taking to X, the Money Saving Expert founder said: "The staggering thing about this Mastercard compensation case is the 'even if you never had one' - the net is spread very far and wide." He added: "Check now if you're due up to £70 from Mastercard - even if you've NEVER had one. Millions are in line for compensation after the card firm settled a landmark legal case against it out of court..." The staggering thing about this Mastercard compensation case is the 'even if you never had one' - the net is spread very far and wide. Walter Merricks, the former financial ombudsman, launched his claim after the European Commission ruled in 2007 that Mastercard's 'multilateral interchange fees' charged to businesses had since 1992 infringed competition law. He alleged that 46 million shoppers in Britain were ripped off after fees were wrongly levied on transactions made over a 15-year period between 1992 and 2008. The fees were paid by retailers accepting Mastercard payments, rather than by consumers themselves. But Mr Merricks claimed shoppers had lost out as retailers passed on these fees in the form of higher prices. It followed the arrival of the Consumer Rights Act 2015, which allowed for US-style class actions in UK competition claims. A statement from Mr Merricks said millions of UK consumers who are part of the class action could now come forward and claim their share of the £200 million, with individuals potentially getting between £45 and £70 each. Mr Merricks said UK consumers would shortly be able to register to receive a payment by completing a simple online form, regardless of whether they ever held a Mastercard card. It was expected that payments would be made to consumers who register before the end of the year, he added. Recommended reading: Commenting on the outcome, Mr Merricks said: 'I started this case because I believed that Mastercard's fees paid by retailers for processing card transactions had been unlawfully high and virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as retailers passed on those costs. 'As the evidence came to be known through the litigation process, this was the position only in a relatively small proportion of transactions and the settlement reflects that. 'The settlement that has today been finally approved represents a fair and just outcome for UK consumers. 'On any view, recovering £200 million by way of a settlement for UK consumers is a huge sum, and that will translate into a meaningful impact in the pockets of UK consumers.'
Rhyl Journal
5 days ago
- Business
- Rhyl Journal
Martin Lewis on the 'staggering' £70 Mastercard payout
Millions are set to receive up to £70 each following the Competition Appeal Tribunal final approval, following a landmark class action against Mastercard, which dates back to 2016. Taking to X, the Money Saving Expert founder said: "The staggering thing about this Mastercard compensation case is the 'even if you never had one' - the net is spread very far and wide." He added: "Check now if you're due up to £70 from Mastercard - even if you've NEVER had one. Millions are in line for compensation after the card firm settled a landmark legal case against it out of court..." The staggering thing about this Mastercard compensation case is the 'even if you never had one' - the net is spread very far and wide. Walter Merricks, the former financial ombudsman, launched his claim after the European Commission ruled in 2007 that Mastercard's 'multilateral interchange fees' charged to businesses had since 1992 infringed competition law. He alleged that 46 million shoppers in Britain were ripped off after fees were wrongly levied on transactions made over a 15-year period between 1992 and 2008. The fees were paid by retailers accepting Mastercard payments, rather than by consumers themselves. But Mr Merricks claimed shoppers had lost out as retailers passed on these fees in the form of higher prices. It followed the arrival of the Consumer Rights Act 2015, which allowed for US-style class actions in UK competition claims. A statement from Mr Merricks said millions of UK consumers who are part of the class action could now come forward and claim their share of the £200 million, with individuals potentially getting between £45 and £70 each. Mr Merricks said UK consumers would shortly be able to register to receive a payment by completing a simple online form, regardless of whether they ever held a Mastercard card. It was expected that payments would be made to consumers who register before the end of the year, he added. Recommended reading: Commenting on the outcome, Mr Merricks said: 'I started this case because I believed that Mastercard's fees paid by retailers for processing card transactions had been unlawfully high and virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as retailers passed on those costs. 'As the evidence came to be known through the litigation process, this was the position only in a relatively small proportion of transactions and the settlement reflects that. 'The settlement that has today been finally approved represents a fair and just outcome for UK consumers. 'On any view, recovering £200 million by way of a settlement for UK consumers is a huge sum, and that will translate into a meaningful impact in the pockets of UK consumers.'
Daily Record
28-05-2025
- Business
- Daily Record
Check if you are due £70 Mastercard payout as millions set to receive compensation
Some 2.5 million people, including those who have never had a Mastercard are due compensation. An estimated 2.5 million people are set to receive up to £70 each following an out-of-court settlement by MasterCard for £200 million in a landmark legal case which started in 2016. It's important to be aware you cannot make a claim just yet - that will be in place soon - and you don't need to have owned a Mastercard to make a claim. What you can do now is check if you are eligible and should make a claim before the deadline at the end of the year. Consumers are eligible if they lived in England, Wales or Northern Ireland for at least three months between June 1997 and June 2008, and who bought goods or services from UK businesses that accepted Mastercard credit cards. For people in Scotland, the starting point is May 1992. Who is eligible to make a claim? has produced a full guide to the claims process which you can view here. You will be able to make a claim if you meet all of the criteria listed below. You lived in the UK for at least three months in a row between 1997 and 2008: England, Northern Ireland and Wales - June 20, 1997 and June 21, 2008 Scotland - May 22, 1992 to June 21, 2008 You were aged 16 or over during those three months added: 'This means that anyone born on or after 22 March 1992 isn't eligible and can't claim.' During the same period, you bought goods or services from a firm selling in the UK - regardless of how you paid. This means you can claim even if you've never had a Mastercard. You lived in the UK on September 6, 2016 - this is the date the class action was filed in the courts. You haven't previously opted out of the legal case - explained: 'If this is the first you're hearing of the case, you don't need to worry about this point - everyone who met the other criteria was opted in automatically and you would've had to fill in a form or contact the law firm to opt out.' Walter Merricks, the former financial ombudsman, launched his claim after the European Commission ruled in 2007 that Mastercard's 'multilateral interchange fees' charged to businesses had since 1992 infringed competition law. He alleged that 46 million shoppers in Britain were 'ripped off' after fees were wrongly levied on transactions made over a 15-year period between 1992 and 2008. The fees were paid by retailers accepting Mastercard payments, rather than by consumers themselves. But Mr Merricks claimed shoppers had lost out as retailers passed on these fees in the form of higher prices. It followed the arrival of the Consumer Rights Act 2015, which allowed for US-style class actions in UK competition claims. A statement from Mr Merricks said millions of UK consumers who are part of the class action could now come forward and claim their share of the £200 million, with individuals potentially getting between £45 and £70 each. He said UK consumers would shortly be able to register to receive a payment by completing a simple online form, regardless of whether they ever held a Mastercard card. It was expected that payments would be made to consumers who register before the end of the year, he added. Commenting on the outcome, Mr Merricks said: 'I started this case because I believed that Mastercard's fees paid by retailers for processing card transactions had been unlawfully high and virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as retailers passed on those costs. 'As the evidence came to be known through the litigation process, this was the position only in a relatively small proportion of transactions and the settlement reflects that. 'The settlement that has today been finally approved represents a fair and just outcome for UK consumers. 'On any view, recovering £200 million by way of a settlement for UK consumers is a huge sum, and that will translate into a meaningful impact in the pockets of UK consumers.'
Daily Mirror
28-05-2025
- Business
- Daily Mirror
Mastercard compensation explained - including how to claim and the exact payout
Mastercard is set to pay out £200million in compensation to customers - but what does this mean? and who is set for the payout? Last week, the Competition Appeal Tribunal ruled that consumers had "lost out" because of Mastercard's "unlawfully high" card fees. According to the announcement, millions of Brits could be eligible for a compensation payment worth up to £70. However, at the moment things are a bit up in the air as Mastercard works to implement how it will pay the compensation. Here we explain exactly what happened, who is eligible for the compensation, and how you can get the cash. The case was first brought forward nearly 10 years ago in 2016 by former financial ombudsman Walter Merricks. He argued that millions of shoppers were "ripped off" after fees were wrongly levied on card transactions. Companies such as Mastercard provide the services and technology for companies to take card payments from the public. Martin Lewis' Money Saving Expert (MSE) website describes them as the "middle man" between banks, businesses, and consumers. Because of this, Mastercard charges a fee on each transaction. These fees, known as "interchange fees," were at the centre of this legal case. Merricks claimed Mastercard raised these fees too high between 1992 and 2008. Businesses and retailers passed these extra costs onto the consumer in the form of higher prices. These hiked prices were passed on to all consumers, not just Mastercard customers. The case was finally settled last week after a year-long negotiation process on the overall settlement amount. The tribunal's decision was based on this settlement and not Mastercard's fee. Mastercard has not admitted any liability in the case and declined to comment when approached last week. For all you savvy savers and bargain hunters out there, there's a golden opportunity to stretch your pounds further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game. Simply follow the link and select one or more of the following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities. As the price hikes were placed on a wide range of goods and services - it means all card users were affected and could be eligible for a payout from Mastercard. However, there are - of course - some caveats and not everyone will be able to claim. Firstly, you can only claim if you lived in the UK for at least three months between 1997 and 2008. For England, Wales, and Northern Ireland, the exact period is between June 20, 1997, and June 21, 2008. For Scotland, the period stems from May 22, 1992 and June 21, 2008. MSE says the period is longer in Scotland as it has different legal rules around time limits for claims. You can only be eligible if you were over the age of 16 years during the three months of living here. This age requirement was put in place as it was decided that those of working age were considered "more likely to have suffered loss on their own account". This age limit means anyone born on or after March 22, 1992 is not eligible to put in a claim. During this same period, you will have needed to have bought goods or services for personal use from a firm selling in the UK. No proof of purchase will be needed for this payment - so you do not need to provide an old receipt - and you did not need to have paid with a card. This means you can claim even if you didn't have a Mastercard card. Finally, you will need to have been living in the UK on September 6, 2016 - the date when the legal claim was filed in the courts. It's important to note that you can't claim if you have already opted out of the claim. Everyone who has met the criteria was automatically "opted in". To opt out, you needed to fill out a form or contacted the law firm in this case directly. Get money news and top deals straight to your phone by joining our Money WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice. Or sign up to the Mirror's Money newsletter here for all the best advice and shopping deals straight to your inbox. The headline compensation figure for this case is £70, however, Martin's MSE team warned that the payout is expected to be a lot less. As mentioned before, the overall settlement sits at £200million, although not all of this will go to consumer compensation. Mastercard will use some of the money to pay legal and court fees. Finally, the exact amount you will get will depend on how many people put forward a claim. The more people that do, the less you will get. It is expected that around 2.2million people will put forward a claim for compensation. If this estimate is correct, the payment will sit at £45 per person. If fewer people put forward a claim, then £70 will be paid to each individual. Any remaining funds will go to the Access to Justice Foundation charity. This is due to a cap being put in place to avoid "disproportionate payouts" compared to the alleged loss people actually suffered. The compensation process is still in its very early days, and things have not been entirely ironed out yet. According to the website, an online claims portal is set to launch in the "coming weeks". The claims process is being administered by the legal service firm Epiq. The group is not the same as the solicitors - Willkie Farr & Gallagher LLP - who worked on the case. Based on similar settlement cases, you will need to provide a range of personal information, including your name, date of birth, home address, email address, telephone number, and banking details. This final detail is needed so the money can be paid to you. As mentioned before, you will not need to submit any proof to make a claim, but you will need to self-certify that you meet the criteria. The claims administrator may do random anti-fraud spot checks on claims being put forward. Once the online claims form is live, it is likely to stay up for a few months, with the compensation payments set to be paid out by the end of the year. With these types of claims, it's important to be cautious and wary of scammers. You cannot yet claim the money, and any advertisements, online posts, texts, or emails suggesting otherwise are likely scams. If you're unsure about anything you see or hear regarding the claim or want to know all updates regarding it - always check the official website. This is as follows: From universal credit to furlough, employment rights, travel updates and emergency financial aid - we've got all of the big financial stories you need to know about right now. Sign up to our Mirror Money newsletter here.
Business Mayor
26-05-2025
- Business
- Business Mayor
In depth: Mastercard – how will the £200m be distributed?
Millions of Britons are being invited to sign up online to receive free money. It is not a scam. The website is a scrupulous attempt to distribute fairly the class members' share of the £200m settlement achieved in the Merricks v Mastercard collective proceedings after eight years of bitterly fought litigation. Of the £200m agreed settlement, half is ringfenced for paying out to class members (pretty well everyone who bought goods in the UK between 1992 and 2008). How much each will collect is unknown. The website dangles a figure of 'between £45 and £70', though in theory it could go as low as £2.50. It all depends on how many sign up. And because of the unprecedented scale of the claim – potentially 44 million class members – that is simply unknown. The higher the expected payment, the more people will sign up; but the more who sign up, the lower the payment. Yet the outcome of this lucky dip could influence a growing controversy over collective redress and the role of third-party litigation funding in the UK. This week, the Competition Appeal Tribunal's 80-page judgment approving the settlement has a stab at predicting what will happen. The judgment cites an estimate by international specialist firm Epiq Class Action & Claims, which has been retained to manage the distribution, that 5% of the potential class – 2.2 million people – would take up an offer if they thought they would get more than £4.50. This would lead to a payment of £45. 'However, there would need to be flexibility in the advertised amount, making clear that the amount could be lower (if a much greater number seek to claim) or higher (if much less than 5% should claim).' In the event of less than 5% coming forward, 'to prevent excessive individual recovery' payments will be capped at £70 per head. (Epiq is charging £2.9m in the event of a 5% take-up.) 'It has been a privilege to end my career breaking new ground and leading the way in ensuring that the class action regime introduced in the Consumer Rights Act 2015 can be shown to work effectively' Walter Merricks, CBE Another figure is based on an opinion survey conducted by Portland Communications for the settling parties. Although 'impressively structured', the results 'serve to highlight the degree of uncertainty as to the proportion of the class that would claim', the judgment states. If class members were told that the individual recovery was likely to be £45, though it could be as low as £2.50, 'then it is plausible that around 10% would claim'. This would add up to £22.50 per head. Meanwhile, another litigation comms outfit, Thorndon Partners, published what it says is the first nationally representative polling and analysis of collective settlement take-up rates. It notes that a 2019 study by the US Federal Trade Commission found that on average, only 4% of eligible class members submitted claims. It also identifies several potential barriers to take-up, including a reluctance to share personal details. While 63% of respondents would like to be paid by bank transfer, only 23% are happy to reveal their account details. With the right messaging, however, take-up may be higher than these surveys suggest. One indicator is rail-delay compensation: in 2023, nearly half (47%) of eligible passengers bothered to submit a claim. If the same proportion went for the Mastercard compensation, the individual payout would be £4.76. Whether that is a good look is another matter. It is not hard to imagine the headline – 'Lawyers get £100m, you get £4.70' – playing into the political debate about litigation funding. And when the Thorndon research asked 'Who do you think benefits the most from settlements?' 34% of respondents said the lawyers who make the claim. Only 29% said 'people affected by the issue'. In a statement this week, class representative Walter Merricks CBE said: 'It has been a privilege to end my career breaking new ground and leading the way in ensuring that the class action regime introduced in the Consumer Rights Act 2015 can be shown to work effectively – even in a case like mine where the compensation obtained is far less than claimed at the outset.' Read More Manchester no longer needs priority protocol in family court Funder Innsworth Capital was less content. Noting that the judgment 'may have far-reaching implications for class actions in the UK', it said: 'We do not think it is a reasonable division of the proceeds, or one that will do anything to encourage investors to fund other opt-out collective actions in the future. 'We are therefore considering of all of our options, including asking the courts to look again at this matter.'
