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UK Supreme Court sues Mastercard for $ 18.5 billion

Summary

UK Supreme Court sues Mastercard for $ 18.5 billion The UK Supreme Court has given the green light to a £ 14bn ($ 18.5bn) class action lawsuit against Mastercard for allegedly inflating fees for over 46 million people in the […]

UK Supreme Court sues Mastercard for $ 18.5 billion

The UK Supreme Court has given the green light to a £ 14bn ($ 18.5bn) class action lawsuit against Mastercard for allegedly inflating fees for over 46 million people in the UK over a 15-year period.

Judgment rejects Mastercard’s appeal and lays the groundwork for the first massive UK consumer lawsuit filed under the new legal regime, and proposes to introduce guidelines for a number of other class actions that were suspended pending this decision.

An extensive and complex case following Mastercard losing a lengthy appeal against a 2007 European Commission ruling that its fees are anti-competitive could give UK citizens the right to receive £ 300 ($ 400) each if successful.

«Mastercard has consistently violated competition law by charging exorbitant fees on card transactions over an extended period and must have known this would result in invisible taxes for UK consumers», – said Walter Merricks (Walter Merricks), who leads the class action lawsuit.

A lawyer who once headed the Financial Ombudsman Service, which deals with consumer disputes with banks, added that prices for «everything we all bought from 1992 to 2008 was higher than it should have been».

Mastercard said it fundamentally disagrees with the statement, which it said was dictated in style «maybe give a ride» (hit and hope) by American lawyers.

«Mastercard will petition the Competition Court of Appeal (which will oversee this case) to prevent a serious risk of the new collective action regime going the wrong way with a case that has fundamental flaws», – the company said in a statement.

UK Supreme Court sues Mastercard for $ 18.5 billion

(1 dollar = 0.7563 pounds)