Friday, February 7, 2025
Friday, February 7, 2025
HomeNewsBusiness NewsCredit Card Companies face legal action by businesses

Credit Card Companies face legal action by businesses

Scottish hotel and hospitality businesses could benefit after a legal Class Action against Mastercard and VISA worth over £4 billion, after The Competition Appeal Tribunal gave the go-ahead for the collective action that could see businesses compensated for the unlawful multilateral interchange fees (“MIFs”) set by Mastercard and VISA that applied to transactions involving commercial cards in the UK.

The claim alleges that businesses that received payments by commercial cards paid fees much higher than they should have been, causing them significant losses.

The Competition Appeal Tribunal (the “Tribunal”) ordered that the claims, brought by the Class Representatives, Commercial and Interregional Card Claims I & II Limited, be certified, enabling the Class Representatives to seek compensation for businesses across the UK for the unlawful fees they paid.

A deadline for involvement in these claims has been set by the Tribunal and businesses are encouraged to register their interest now on the claim website to stay updated on developments in the proceedings and, if successful, to claim their share of any damages awarded.

Responding to the Tribunal’s judgment, Jeremy Robinson, a partner at Harcus Parker Limited, representing the Class Representatives said,“We welcome the opportunity to hold Mastercard and VISA to account for imposing multilateral interchange fees at an unlawfully high level and causing substantial loss to UK businesses – including many in the hotel and hospitality sectors.

“Major hotel brands that accept commercial card payments are likely to have been significantly affected and could be entitled to large compensation. Similarly, we anticipate that many small to medium-sized hotel and hospitality businesses will be eligible for compensation under our claim.”

Stephen Allen, the director of the Class Representatives added, “UK businesses in the hotel and hospitality sectors have been particularly hurt by Mastercard’s and Visa’s multilateral interchange fees and we are delighted that this claim has been endorsed by leading trade bodies including UK Hospitality

The website to register is here

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