Daily Management Review

MasterCard faces $ 18.6 billion payout in UK class action lawsuit


Payment company MasterCard may have to pay £ 14bn ($ 18.6bn) to UK residents. Last Friday, the country's Supreme Court ruled admissible a class action lawsuit from residents of the country, which has been contested for four years, Bloomberg reports.

A claim on behalf of 40 million British consumers was filed with the Competition Appeals Tribunal (CAT) by the former head of the UK Financial Ombudsman in September 2016. The reason for the lawsuit was the decision of the European Commission back in 2007, which considered the interbank commissions for processing cross-border transactions on MasterCard cards a violation of EU antimonopoly legislation.

The European Commission ruled that MasterCard was violating EU law from 1992 to 2007. Approximately the same period (from 1992 to 2008) is also mentioned in the lawsuit, which requires the company to pay £ 300 to each injured British citizen.

Judge Michael Briggs ruled that CAT should initially classify the claim and not dismiss it just because the compensation calculations would be "cumbersome and costly."

MasterCard insists that in fact, UK citizens did not complain about inflated fees, and the lawsuit is being filed by lawyers who do it for their own benefit.

source: ft.com