Innsworth signs agreement to fund £14bn Mastercard consumer claim

Source: Innsworth

Innsworth Litigation Funding confirms that it has agreed to fully fund the £14bn Mastercard consumer claim.

This is the first mass consumer claim brought under the new collective action regime introduced by Parliament in the Consumer Rights Act 2015 and the biggest claim in UK legal history.

In September 2016, Walter Merricks CBE, the former Financial Ombudsman, commenced proceedings against Mastercard seeking £14bn in damages on behalf of 46 million UK consumers for losses suffered as a result of illegal card fees. The claim was brought as a class action under the collective action regime and required certification by the Competition Appeal Tribunal (CAT). CAT refused to provide certification. In a landmark unanimous judgment delivered in April, the Court of Appeal comprehensively set aside the CAT judgment and has found in favour of Mr Merricks on all grounds of appeal.

The Court of Appeal has ruled that the Tribunal’s judgment contained errors of law and that the Tribunal mis-directed itself in how it applied the new legislative regime. Not only did the Court of Appeal conclusively set aside the refusal to permit the collective action, it made findings of law in favour of Mr Merricks on each of the grounds upon which the CAT had refused to certify the proposed collective action. Mastercard has applied to the Supreme Court for permission to appeal against that decision. Innsworth has been funding the case since Merricks appealed the original CAT decision.

Ian Garrard, managing director of Innsworth Advisors, advisors to Innsworth, in London, stated, ‘We are one of the only funders in the top end of the market with the resources and expertise to fund a case as complex as the £14bn Mastercard claim. The development of a class action regime in the UK provides Innsworth with an opportunity to grow its investments in litigation, on high value and large scale cases such as this where its resources can best be put to work.’

Innsworth is currently funding substantial claims for shareholders against Volkswagen and Porsche arising out of the emissions scandal. Innsworth is funded by funds under the management of Elliott Management Corp.

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