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Everyone To Get £450 Windfall?

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40 MILLION British credit card users could EACH receive a £450 windfall as MasterCard is taken to court over £14bn of 'unfair charges'

https://www.theguardian.com/money/2016/sep/08/mastercard-sued-for-14bn-over-allegedly-overcharging-customers

Credit card group MasterCard is being sued for £14bn, the largest legal claim in British history, in a landmark lawsuit over allegations that it overcharged 46m UK consumers.

The claim, which MasterCard said it would oppose vigorously, is the first major case under a new framework for class action lawsuits on behalf of multiple claimants. It revolves around fees imposed by MasterCard on businesses that accepted its debit and credit cards between 1992 and 2008.

Law firm Quinn Emanuel, which filed the suit at the Competition Appeal Tribunal, alleges that these charges – known as “interchange fees” – were set at an unlawfully high level and pushed up prices for British consumers.

The claim was brought by Walter Merricks, the UK’s former chief financial services ombudsman, on behalf of around 46m consumers he claims have lost out.

Just imagine what consumers will get if someone does this for housing. That would certainly make a nice deposit to buy a house....

Although the Guardian stays away from the £450 handout unlike the Wail.

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FFS.
I don't think I've ever had a credit card charge.


You don't need to. It's the charge that MasterCard charged to retailers, who absorbed it in higher prices to consumers than otherwise would have been the case. So the payout would be automatic to anyone who used a MasterCard 1992 to 2008, and potentially to anyone who bought anything with cash too during that period (since they also suffered from higher prices than they needed to be) - ie basically anyone alive in this country at that time!

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But you'll have to wait until 2018, when the case is expected to be concluded. And then maybe another couple of years for all the appeals and for MasterCard to set up a claim system.

Can't see it happening myself.

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You don't need to. It's the charge that MasterCard charged to retailers, who absorbed it in higher prices to consumers than otherwise would have been the case. So the payout would be automatic to anyone who used a MasterCard 1992 to 2008, and potentially to anyone who bought anything with cash too during that period (since they also suffered from higher prices than they needed to be) - ie basically anyone alive in this country at that time!

 

 

 So if it's something like £450 each it sounds like they'll be getting away lightly.

 

A bit like the PPI.

Edited by billybong

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So if it's something like £450 each it sounds like they'll be getting away lightly.
 
A bit like the PPI.


£450 X 40 million people = £18bn. That's quite a hit on the balance sheet.

PPI bill was about £25bn I think, though that was spread across all the banks. This is just for one company.

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£450 X 40 million people = £18bn. That's quite a hit on the balance sheet.

PPI bill was about £25bn I think, though that was spread across all the banks. This is just for one company.

 

So £28.13 a year for 16 years for 40 million people.  It seems very small relative to each person's annual consumer spend - in average terms.

 

If it's covering 16 years for 40 million Mastercard users plus to account for as they say "All UK consumers who used MasterCard credit cards, or even cash, cheque, or any other payment method, for their purchases between 1992 and 2008because prices were higher than they needed to be then £18bn could be a snip considering that UK consumer spending seems to be more than £1 trillion a year.

 

So a total of £18 billion over 16 years would be about 0.1% of total consumer spending a year - how much did they bump up prices higher than they needed to be - similar to house prices likely far more than 0.1% a year even if they just propped up deflation in prices.   Although in the case in question one assumes they're only referring to the increases in price due to the interchange rate - not increases in price due to facilitating profligate lending.

 

Maybe £18 billion would be something near to their total profit over those years (inflation adjusted)? 

 

Then there's the global spend on top.  No doubt the bailout crew are standing by to thieve some more taxpayer and saver money.

 

http://www.tradingeconomics.com/united-kingdom/consumer-spending

 

http://www.statista.com/statistics/368665/consumer-expenditure-united-kingdom-uk/

Edited by billybong

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Who could resist, this could be some sort of meme. I made up the numbers. Feel free to adapt, use, memeagram it.

HTB - £123,244m

PPI - £593,234m

Scrappage Scheme- £888,214m

Bailouts -£1,234,232,bn

Mastercard - PRICELESS!

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Presumably the ruse of people having to "opt in" means that people are having to accept the official calculation of how much compensation they're entitled to - even if it turns out to be a low "offer".

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Exactly -I refused the insurance because I read that my maximum liability was £25 and the premium was £45 ! So for being stupid they've got big payouts.

(On the other hand I believe some people were basically auto-enrolled without their knowledge, so they probably do deserve their money back)

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They sent me forms but I refused my card insurance refund on principle - I knew what I was doing when I signed up for it, and when I didn't want it any more, I cancelled it.

Does MasterCard have 19 billion to donate to the UK economy?

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