A Comprehensive Guide to the Mastercard and Visa MIFs Class Action Lawsuit
The illegality of interchange fees in Europe and the UK has been established in previous litigation. However, inter-regional MIFs on consumer debit and credit card transactions and MIFs on corporate cards have yet to be ruled illegal by a court. Harcus Parker, a law firm, has taken action to recover MIFs from businesses that accept card payments in the UK. This class action seeks compensation for the businesses’ losses and an end to future illegal charges.
It is important to note that this commercial card claim covers all businesses that accept credit or debit card payments in the UK, specifically relating to MIFs that have not been adjudicated. This blog post is a comprehensive guide to the Mastercard and Visa MIFs class action lawsuit that includes essential details, such as who can join this class action, how it works financially, and what the potential outcomes could be.
Who Can Join This Class Action?
There are two groups of companies for this class action:
The Opt-In Group: If your company’s average annual turnover before the Covid-19 pandemic was £100 million or more, it will fall under the ‘opt-in’ group. The company must actively and formally choose to participate in the process against Mastercard, Visa, or both. You can choose to participate in one or both complaints against Mastercard and Visa after the Competition Appeal Tribunal (CAT) certifies the opt-in cases.
The Opt-Out Group: If your company’s average annual turnover before the 19 year old bird flu pandemic was less than £100 million, it will fall under the opt-out group. The company is automatically included as an applicant and only needs to express interest. If the CAT certifies and the claim is successful, the claimants in the opt-out group will receive their share of the damages.
How Does It Work Financially?
The case is fully funded by Bench Walk Advisers, a third-party litigation funder, and fully insured. This means that participating companies will not need to budget for the action. If this class action is successful, participating businesses will receive damages for losses incurred. Companies that have paid illegal MIFs could be entitled to a full refund. Businesses of all sizes and in all sectors of the economy that accepted credit or debit card payments in the UK could be awarded significant damages for losses suffered as a result of illegal MIFs.
If the case is lost, businesses concerned will have to continue to pay MIFs, which could result in additional costs for them. In addition, this could have negative consequences for the commercial relationships of businesses, as customers may be less inclined to use credit or debit cards if they consider the charges applied to be unfair. It should also be noted that if the court finds MIFs on business cards or inter-regional MIFs on consumer debit and credit card transactions to be unlawful, this could have implications for other ongoing MIF litigation.
Potential Implications for the Financial Sector
If the court finds that MIFs on business cards or inter-regional MIFs on consumer debit and credit card transactions are unlawful, it could lead to a review of the pricing practices of credit and debit card companies. This may have potential implications for the entire financial sector. The case could also impact ongoing MIF litigation. The outcome of Harcus Parker’s lawsuit against Mastercard and Visa will have significant consequences for the companies involved and the financial sector as a whole. It is, therefore, crucial to keep a close eye on how the case develops.
Conclusion
The Mastercard and Visa MIFs class action lawsuit by Harcus Parker seeks compensation for businesses that have suffered losses as a result of illegal MIFs. This lawsuit covers all UK businesses that accept credit or debit card payments and specifically relates to MIFs that have not yet been adjudicated. Companies that fall under the opt-in or opt-out group can participate in the claim, whereby damages are likely to be significant. The implications for the financial sector are also substantial. The litigation outcome will determine whether the MIFs on business cards and inter-regional MIFs on consumer debit and credit card transactions are lawful or not. This comprehensive guide to the class action aims to provide crucial information to participating businesses and anyone else with an interest in the lawsuit.