Mastercard marathon on last lap as funder settles payout dispute

A decade-old pioneering group action entered the home straight this week with the announcement yesterday that class representative Walter Merricks CBE and the funder of the Mastercard action have settled their dispute over fees.

Releasing an order made by the Competition Appeals Tribunal facilitating payment of £62,560,808 to Innsworth Capital, Merricks revealed that the funder has agreed to drop an arbitration claim against him. The development allows the process of distributing £100m to members of the opt-out class to begin later this year.

The action over historical interchange fees charged by Mastercard was the first opt-out claim under the Consumer Rights Act to be certified by the CAT. It was originally valued at some £14bn, but the parties settled in 2024 for £200m. Innsworth, which had invested £46m, pursued a claim for £179m from the settlement. This was thrown out by the divisional court in June. Innsworth also commenced arbitration proceedings against Merricks for failing to use his best endeavours in the action.

Merricks said yesterday: ‘I am delighted to report that I have resolved all differences with my funder. After almost 10 years of litigating first with Mastercard and then with Innsworth to get compensation for British consumers, this finally opens the way for me to prepare for distribution of at least £100m to consumers.’

Merricks added that the sum is the largest amount ever secured from group litigation for UK consumers. It will be shared equally between an unknown number of claimants from a class consisting of anyone who shopped in UK supermarkets between May 1992 and June 2008. Claimants will be recruited with a nationwide publicity campaign and given six months in which to register, Merricks said.

Payments will be made in the first half of 2027. ‘The expectation is that consumers should get a minimum of £45, which could rise to as much as £70 depending on the numbers that claim,’ Merricks, a solicitor and former financial services ombudsman, said. Claimants will have a choice of direct payments into their bank accounts, gift vouchers or donations to charity.