£400 compensation from Mastercard action?

6 July 2016
£400 compensation from Mastercard

There's some class action being taken against Mastercard, which says that shoppers have been swindled out of money, by as much as £400, in needless chip and pin charges in shops.

This means that millions of people could be compensated thanks to the £19 billion pound claim which is being launched.

It is claimed that consumers weren't told about the charges, and that these costs which retailers passed onto to shoppers, should end up in compensation for those who paid the extra.

MasterCard aren't having it of course, saying that the cost of using credit and debit cards is outweighed by the value and convenience they give to those who shop with them.

This claim is a massive one though, and the largest in UK legal history, and will be one of the first under the Consumer Rights Act 2015. Basically, under new rules, people are allowed to collective damages on behalf of a class of people who have suffered a financial loss.

MasterCard lost a legal wrangle with the European Commission (EC), and were found to have infringed EU law with the way they charged the use of credit and debit cards.

As for this latest class action suit, it is being issued by Walter Merricks, the former Chief Financial Ombudsman.

Merricks reckons that MasterCard's charges on individual transactions have cost consumers £19 billion since 1992.

He said: "The prices of everything we all bought from 1992 to 2008 were higher than they should have been as a result of the unlawful conduct of MasterCard. To be clear, there is no question that MasterCard acted illegally in the way it conducted its business, a business that affects all of us."

"All of us over-paid to the tune of up to £19 billion during a period lasting 16 years. Although most of us did not know this, experts who study the retail economy knew it was happening – and so did MasterCard."

"My aim is to get the redress to which UK consumers are entitled and to ensure that MasterCard cannot hold on to the illegal profits it made. This case should send a signal to companies that break competition laws at the expense of UK consumers that they do so at their financial peril."

A spokesperson for MasterCard said: "We firmly disagree with the basis of this legal claim. Electronic payments deliver real value to people online, instore and everywhere. MasterCard is committed to providing ever more convenient, safe and secure payments to all our customers, including consumers, retailers, governments and banks."

If this pulls off, you might be getting some compensation money and someone else will do all the hard work to make sure you get it.


TOPICS:   Banking

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