A significant ruling in the UK has paved the way for a £200 million class-action settlement against Mastercard, offering millions of consumers the opportunity to claim compensation for purchases made between 1992 and 2008. This case, one of the largest of its kind in UK history, has the potential to affect up to 46 million consumers. If you were a UK resident during this time and made any purchases, you might be eligible for a payout. Here’s everything you need to know about the claim process, eligibility, and how to secure your portion of the compensation.
Background of the Case
The case began in 2016, with Walter Merricks, the former Financial Ombudsman, leading the charge against Mastercard. Merricks accused Mastercard of imposing excessive interchange fees on UK retailers from 1992 to 2008. These fees were typically passed on to consumers, raising the prices of goods and services across the board. The lawsuit sought to recover damages for the millions of consumers who were affected by these inflated prices, even if they didn’t directly use a Mastercard for their purchases.
Originally, Merricks aimed for over £10 billion in compensation. While the final payout of £200 million is a significant reduction, it still represents a major win for consumer rights in the UK. This case also sets a powerful precedent for future class-action lawsuits in the UK, demonstrating that collective legal action can succeed against large corporations.
Who Is Eligible to Claim?
If you were living in the UK between 1992 and 2008 and made any purchases from UK retailers, you could be eligible for compensation, even if you never used a Mastercard. This includes purchases made with cash, debit cards, or any other form of payment. The claim is open to individual consumers, not businesses or corporate entities.
The best part? You don’t need to have any receipts or account statements to claim your portion. The case is also an opt-out scheme, meaning you are automatically included unless you actively decide to exclude yourself from the settlement. So, if you meet the basic criteria, you may already be eligible to claim your share of the compensation.
How Much Compensation Can You Expect?
The payout for each individual will depend on the number of people who submit a claim. While the exact amount is not set in stone, early estimates suggest that if all eligible consumers apply, the compensation could range from £10 to £20 per person. However, if fewer claimants step forward, the payouts could be as high as £50 or more per person.
It’s important to note that the settlement is not based on how much you spent or whether you used a Mastercard. Every claimant is entitled to the same fixed share, which makes this a fair distribution for all involved. As Merricks stated, the settlement is about fairness and holding Mastercard accountable for its role in inflating consumer prices.
Steps to Make Your Claim
Once the official claims portal opens, expected in mid to late 2025, you will be able to submit your claim online. To register your interest, visit the official website at mastercardconsumerclaim.co.uk. When the time comes, you’ll need to provide some basic details, such as your name, address(es) from 1992–2008, and current contact information. No receipts or account statements are required for the process.
After submitting your claim, you’ll receive a confirmation email. The payouts will be processed electronically, and you can expect to receive your compensation via direct deposit, prepaid card, or PayPal, depending on what’s most convenient for you.
The Legal Significance of This Settlement
This case marks a milestone in UK consumer rights, being the first large-scale class-action lawsuit to be approved under the Consumer Rights Act 2015. Before this legislation, collective legal actions were difficult to pursue in the UK, leaving many consumers without a practical means of holding companies accountable for corporate wrongdoing. The success of this case signals a shift in the UK’s legal landscape, one that could pave the way for future class-action lawsuits across various sectors.
The Mastercard settlement may encourage similar actions in industries where consumers have faced overcharging or unfair business practices. Experts believe this case will help to strengthen consumer protection laws and provide a model for future collective redress cases.
The Impact on Vulnerable Groups
While anyone who lived in the UK between 1992 and 2008 can claim, certain groups may stand to benefit more directly from this payout. Low-income families, pensioners, and frequent shoppers are particularly affected by the price inflation caused by Mastercard’s fees. For example, those who were on tight budgets during this period may find the compensation particularly helpful, as they were disproportionately impacted by the higher prices.
One claimant from Manchester, Amanda, shared her thoughts, saying, “As a single mum at the time, I was always trying to stretch every pound. I didn’t realise these costs were inflated. This is a welcome surprise.” Her story reflects the reality for many who struggled with the financial burden of rising prices, making this payout a much-needed financial boost.
Mastercard Case and International Settlements
While class-action lawsuits are more common in the United States, the Mastercard case in the UK is a landmark moment for collective legal action in the country. In comparison to major class-action cases in the US, such as the Apple iPhone slowdown lawsuit or the Equifax data breach settlement, the Mastercard case is a significant step toward ensuring that UK consumers have the same legal recourse for corporate misconduct.
This case demonstrates that the UK is evolving in its approach to consumer rights, and as the legal framework for class-action lawsuits strengthens, it could inspire more cases against large corporations in various sectors, from technology to telecommunications and retail.
A Victory for Consumer Rights
The £200 million Mastercard settlement represents a major victory for consumer rights in the UK, offering compensation to millions of individuals who were affected by inflated prices due to excessive interchange fees. While the payout per person may seem modest, it’s an important step forward in holding corporations accountable for their actions and ensuring that consumers have access to justice.
If you were living in the UK between 1992 and 2008 and made purchases from UK retailers, be sure to register your interest at mastercardconsumerclaim.co.uk. Don’t miss out on your chance to claim your portion of this landmark payout and be part of this historic moment for consumer rights.