Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Mastercard battles to limit scope of $19 billion UK class action

Stock MarketsMar 26, 2021 12:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: FILE PHOTO: Mastercard Inc. credit cards are displayed in this picture illustration

By Kirstin Ridley

LONDON (Reuters) -Mastercard, a global payment processor, is battling attempts to add about 14 million deceased people to a 14 billion pound-plus ($19.3 billion) British class action in an effort to limit the scope of the historic case.

A Mastercard (NYSE:MA) lawyer told London's Competition Appeal Tribunal (CAT) on Friday that an application seeking to add those who died between 1992 and 2008 into the country's first mass consumer claim, that alleges the company overcharged people over a near 16-year period, was a "nullity".

"A claim cannot be brought in the name of a deceased person," Mark Hoskins, representing Mastercard, said at the hearing.

Former financial ombudsman Walter Merricks, who is leading the claim, alleges that Mastercard overcharged almost 60 million people in Britain - including about 14 million people who are deceased - over the period. The case could entitle adults and their estates to roughly 300 pounds each if successful.

Hoskins said attempts to add new members -- or their administrators, personal representatives, executors or next of kin -- to the "very serious claim" was also now time-barred.

The company is also resisting attempts to add compound interest to any award, which the court heard could push up the value of the claim by more than 2 billion pounds.

Lawyers for Merricks pushed for the deceased to be included, questioned why death might time-bar a valid case and urged the tribunal either to certify the lawsuit with compound interest or defer the question to the trial tribunal.

The drawn-out case was brought in 2016, one year after the CAT was nominated to oversee Britain's U.S.-style "opt-out" class action regime for breaches of UK or EU competition law.

The CAT blocked the case in 2017 but is re-considering authorising it as a collective action and determining its scope -- and establishing a standard for a string of other, stalled class actions -- after the UK Supreme Court in December lowered the bar for allowing such actions to proceed.

Merricks, who is being advised by law firm Quinn Emanuel, alleges Mastercard charged excessive "interchange" fees – the fees retailers pay credit card companies when consumers use a card to shop - between May 1992 and June 2008 and that those fees were passed on to consumers as retailers raised prices.

Mastercard says it "fundamentally disagrees" with the claim, that people received valuable benefits from its payments technology and that the lawsuit is driven by U.S. lawyers and backed by organisations focused on making money for themselves.

A judgment will be made later.

($1 = 0.7264 pounds)

Mastercard battles to limit scope of $19 billion UK class action
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Alan Rice
Alan Rice Mar 26, 2021 12:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lawsuit is without merit. Caveat Emptor.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email