Major Delay in Mastercard Payouts for Millions of UK Shoppers
Date: June 17, 2025
Source: Money Blog, Sky News
In a recent development concerning a significant legal settlement, millions of UK shoppers might experience extended waiting times for payouts resulting from a class action against Mastercard. Originally, consumers were expected to receive compensation between £45 and £70 each, but complications arising from a new legal challenge could push payouts back for months.
Overview of the Mastercard Settlement
In May, Mastercard reached an out-of-court settlement amounting to £200 million, following claims made by Walter Merricks, the former financial ombudsman. Merricks argued that 46 million UK consumers were unfairly charged due to fees incorrectly levied on transactions processed between 1992 and 2008. Although these fees were paid by retailers, he contended that they were ultimately passed on to consumers in the form of higher prices for goods and services.
Automatic inclusion in this class action applies to individuals who lived in the UK during the specified timeframe and were aged 16 or over, as well as those who bought non-business goods from UK sellers.
New Legal Challenges Arise
The anticipated launch of a claims website for consumers has hit a snag due to a new challenge introduced by the company Innsworth, which partially financed the original case. Innsworth’s legal action seeks to contest how the £200 million fund will be distributed among claimants, demanding a larger portion of the settlement for itself. This has introduced uncertainty into the timing of payouts, with warnings that successful arguments could lead to reduced compensation for consumers.
MoneySavingExpert indicated that the operational delays stemming from Innsworth’s challenge could mean claimants may face several months before receiving any compensation.
Implications for Consumers
The ongoing legal proceedings not only create uncertainties regarding the timelines for payouts but may also affect the compensation amounts consumers initially expected. As of now, shoppers who were impacted during the specified period may find themselves in a waiting game, navigating a complex legal landscape that could alter what they ultimately receive from the settlement.
Conclusion
The Mastercard case, one of the largest consumer claims in UK history, has now become a source of concern for millions who believe they are entitled to compensation. As legal complexities unfold, both the timelines for payouts and the amounts claimants may receive hang in the balance. Affected consumers are advised to stay informed as developments arise and to prepare for possible delays in receiving their compensation.