Millions of cardholders in line for Mastercard compensation payouts have received a major update, with claims now set to proceed by the end of this year. Around 47 million people could receive between £45 and £70 each, following a landmark legal victory last year, and eligibility extends even to those who never used a Mastercard.
Legal claim background and eligibility
Walter Merricks, a former financial ombudsman, first launched the legal claim in 2016. He argued that shoppers were charged higher prices after fees were wrongly levied on transactions over a 15-year period between 1992 and 2008. It is not necessary to have owned a Mastercard at any point to be eligible for compensation.
Consumers have faced delays due to legal challenges, but Merricks announced this week that the claims have now been dropped, allowing the distribution process to start. He said the update "finally opens the way for me to prepare for distribution of at least £100m to consumers".
Who can claim and how much
Merricks added: "Most people who are now over 34 and who shopped in supermarkets between May 1992 and June 2008 will be eligible to claim, regardless of whether they ever had a Mastercard card." He is also exploring giving consumers the option to donate their payout to a small number of national charities.
Alex Neill, co-founder of Consumer Voice, said: "This is great news for millions of hard-pressed consumers. Shoppers will soon be able to claim at least £45 in cash they’re owed. When the process opens, make sure you don’t miss out."
Next steps and charity distribution
Clare Carter, chief executive of the Access to Justice Foundation, said it has "already begun working with partners to ensure any unclaimed money gets distributed to charities that will improve access to justice for those that need it the most".
Mastercard declined to comment on the court ruling. Consumers are advised to watch for the official claims process opening by the end of this year, with payouts expected to be between £45 and £70 per eligible person.
