Last month, Mastercard agreed to pay a total of £100 million in compensation to UK shoppers — but now, Martin Lewis’s Money Saving Expert (MSE) warns claimants may have to wait before they receive any cash.
A landmark lawsuit against the company, first brought by former financial ombudsman Walter Merricks almost a decade ago, was recently settled out of court for £200 million.
Half of this total was then earmarked for consumers, with MSE saying ‘millions are in line’ to receive payouts of up to £70 each.
Plus, as the case concerns processing fees charged to retailers — which were then passed on to shoppers in the form of inflated prices — you don’t need to have ever had a Mastercard to qualify.
However, in the latest edition of its newsletter, the consumer site explained: ‘It could be months until the money is paid out, because a company called Innsworth – which helped fund the case – is now trying to challenge how these funds will be split.’
This company ‘puts up money to support big legal claims, in return for a share of any winnings’ but says the Tribunal approving the settlement ‘made a series of errors in its judgment’ when deciding how much of it should go to them.
As such, Innsworth has filed a judicial review to try and get a bigger cut, which will not only delay claims and payouts but could impact the amount people end up getting.
Here’s what we know so far.
Who is eligible for compensation from Mastercard?
Even though you can’t claim yet, according to MSE, you’ll be eligible to do so if you meet all of the following criteria:
- You lived in England, Northern Ireland or Wales for at least three months in a row between June 20, 1997, and June 21, 2008. Or, you lived in Scotland for at least three months in a row between May 22, 1992, and June 21, 2008.
- You were aged 16 or over during those three months.
- During the same period, you bought goods or services from a firm selling in the UK – regardless of how you paid.
- You lived in the UK on September 6, 2016.
- You haven’t previously opted out of the legal case – you would have needed to actively fill in a form to do so, so if this is the first you’ve heard of the case, it doesn’t apply.
You don’t have to have been part of the legal action before now to be able to claim, and you won’t be asked for proof of purchases made during the qualifying period.
For those who died before being able to claim, representatives of their estate may be able to do so on their behalf.
If you need further details, check out the full list of requirements here.
How much is the compensation?
The amount you’ll get all depends on the result of the Innsworth court action as well as how many people end up applying.
The MSE site explains: ‘If the expected number of people claim – roughly 2.2 million based on professional estimates – each person will get £45.
‘If fewer people than expected claim, the maximum each person will get is £70… due to a cap that was put in place to avoid people getting disproportionate payouts compared to the alleged loss they suffered.
‘If many more people than expected claim, you may only get a few quid. However, this scenario is seen as unlikely based on representative polling and the views of the claims administrator.’
How can I claim compensation?
Once the Innsworth challenge is resolved, people wishing to claim will be able to do so via the Mastercard Consumer Claim official website.
While an exact timeframe for the compensation, which will be administered by legal services firm Epiq, has not been announced, MSE states that once the portal is made available, ‘You should have at least a few months to apply using the “simple online form”.’
Details on what the forms will entail is also yet to be released, but based on previous group legal action, the consumer champion expects it’ll involve self-certifying that you meet the criteria by providing personal details like your name, date of birth, and address.
You’ll likely then be asked to ‘attest that the information you’ve given is true and correct to the best of your knowledge,’ with the claims administrator potentially following up with random anti-fraud spot checks.
MSE also warned that this scheme could be used by scammers ‘as an opportunity to con you out of your money,’ so you should beware of adverts, online posts, texts or emails mentioning the claim, and always check the official website before taking any action.
Earlier this year, a Mastercard spokesperson welcomed the decision, saying in a statement: ‘We will continue to focus on providing consumers and businesses with what they expect from Mastercard – a great payments experience, strong value and peace of mind.’
Get in touch with our news team by emailing us at webnews@metro.co.uk.
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