Competition
Merricks v Mastercard and the £200 Million Settlement
An overview of the settlement of one of the first major UK class actions, examining the tribunal's approval and the dispute with the litigation funder
Younas Ficel ·
Earlier this year, the Competition Appeal Tribunal approved a £200 million settlement in Merricks v Mastercard, ending one of the longest-running UK class actions. The claim had once been valued at around £14 billion.
Walter Merricks, a former financial ombudsman, brought the claim in 2016 on behalf of around 46 million UK consumers. He argued that Mastercard's card fees had been set too high and that shoppers ended up paying more as a result. It was one of the first big claims under the UK's opt-out class action system.
Mastercard offered £200 million as its final offer and Merricks accepted. The company funding the claim, Innsworth, objected and said the amount was too low, but the tribunal approved the settlement in February. Consumers were given the first £100 million, and the funder's share was limited.
Innsworth is now challenging the tribunal's decision in court and has also started separate proceedings against Merricks himself.
Overall, the case shows the tension between claimants and the funders who pay for their claims, and the tribunal's view that consumers' interests come first.
Sources
- Slaughter and May, ‘Merricks v Mastercard (settlement approval decision)’ (2025)
- Legal Futures, ‘Tribunal approves landmark £200m Mastercard settlement’ (February 2025)
- Global Legal Post, ‘CAT approves £200m Mastercard settlement amid bitter funding dispute’ (2025)