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British tribunal backs Mastercard settlement

Britain’s Competition Appeal Tribunal has approved the settlement of a mass-consumer claim against payments company Mastercard, after it had been challenged by a litigation funder. 

The claim, by former financial ombudsman Walter Merricks as class representative of 44 million people, had sought £17 billion in compensation for excessive transactional fees. 

One of the three tribunal judges described the £200 million eventually achieved as “disappointing”, according to the Law Society Gazette of England and Wales.

The settlement, announced in December, had been challenged by litigation funder Innsworth Capital on the grounds that it was premature and too low. 

‘Responsibility’ 

Mark Brealey KC, for Merricks, told the court that Innsworth “has not got a bad return”. 

Tribunal chair Mr Justice Roth said that a judgment would be ready “within the next three weeks”. 

His colleague Hodge Malek KC paid tribute to Merricks: “Being a class representative is a huge responsibility. Mr Merricks has tirelessly fought for class members over the last eight years and that is appreciated. The fact the outcome has been disappointing in the light of how the evidence and rulings have developed does not detract from that.” 

‘Best amount possible’ 

In a statement after the three-day hearing, Merricks said that he was pleased that the tribunal had found that the settlement was just and reasonable. 

“I had clearly hoped to have recovered more, but the case and facts developed in a way which meant I could recover less than I initially planned, but I recovered the best amount possible,” the Gazette quoted him as saying. 

The Mastercard case was the first mass-consumer action to be approved in Britain, having been given the green light by the Supreme Court in 2020.