Could you cash in with class action?

Overcharged on credit card fees or train tickets? Millions could win back money with group lawsuits. By Esther Shaw

‘Many people have little or no awareness of group claims as a route to compensation’

Millions of consumers who have been ripped off by big companies could be in line for payouts because of a host of high-profile collective lawsuits building in the UK.

Known as “class actions”, the lawsuits involve a group of people coming together to make the same legal claim. One person then takes the company to court on behalf of those affected.

A number of collective lawsuits are making their way through the UK legal system right now which, if successful, could see millions of people receiving payouts of up to £3,000 if you qualify for all of the affected firms.

According to Alan Davis, of law firm Pinsent Masons, “opt- out” class actions in competition cases – which automatically include all those affected (see right) – have been on the rise since the landmark Merricks Supreme Court judgment in late 2020. This ruled that Mastercard had breached competition law by charging excessively high interchange fees.

He adds: “In 2021, the UK’s Competition Appeal Tribunal (Cat) certified three opt- out mass actions involving payment card interchange fees, one involving landline telephone services, and two related claims involving train fares.”

Six further mass actions were certified in 2022, including one opt-in action, while one has been certified so far in 2023. More than a dozen other cases are currently before the Cat and the High Court.

MASTERCARD Payout estimate Less than £300

Millions to bring biggest consumer claim in UK history

Up to 46m shoppers could potentially get a payout if a landmark £17bn case against Mastercard is successful.

This case – the biggest consumer claim in UK legal history – is being led by solicitor and former financial services ombudsman, Walter Merricks.

He began his class action in 2016, arguing that consumers paid higher prices for goods because of the fees merchants were charged by Mastercard from 1992 to 2008.

Mr Merricks said: “Mastercard charged billions of pounds of unlawfully high fees for its sole benefit and to the detriment of consumers.”

As this is an opt-out claim, you don’t need to do anything to be eligible for compensation if Merricks is successful. You are automatically included if you were an adult living in the UK for at least three months between 1992 and 2008, and you purchased goods and services from retailers who accepted Mastercard.

A spokesman for Mastercard said: “This flawed claim isn’t about helping UK consumers. It’s being pushed by lawyers and their financial backers trying to make money for themselves. We’ll continue to fight it and are confident it will be thrown out.”

Initially it was suggested shoppers could get payouts of £300. Following a number of related court rulings the claim figure was reduced to £10bn, meaning smaller payouts. Mastercard believes the case will not succeed.

BT LANDLINE Payout estimate £200–£500

Claim is that BT customers who did not have broadband bundles were overcharged

In another big case, which alleges that 2.3m residential landline customers were overcharged by BT, payouts of up to £500 could be up for grabs if collective proceedings are a success.

The £600m compensation claim is being brought by Justin Le Patourel, who has instructed the law firm Mishcon de Reya to advance the claim. If you were a BT landline customer between October 2015 and April 2018 but did not take a BT broadband service, or if you had a BT landline and broadband separately (not a bundle) from October 2015 until today, you could be eligible. If you meet the criteria you are automatically included in this claim as it is being brought on an opt-out basis.

BT said: “We take our responsibilities to customers very seriously and will defend ourselves against any claim that suggests otherwise.”

APPLE & SAMSUNG Payout estimate £5–£30

It is alleged a chip maker inflated fees for smartphones

Millions of Apple and Samsung 4G smartphone users who bought a new smartphone after October 2015 could be in line for compensation from global chip maker, Qualcomm.

Consumer group Which? alleges the company abused its position and charged manufacturers inflated fees to use its technology. This led to consumers paying higher prices for phones, it says. Lisa Webb, consumer law expert at Which?, said: “We are bringing this claim on behalf of millions of consumers so that, if successful, they can get back nearly £500m we believe they are owed by Qualcomm.”

The claim by Which? will go ahead on an opt- out basis. Qualcomm has been approached for comment.

TRAIN TICKETS Payout estimate Up to £55

Rail operators are accused of overcharging into London

More than 3m passengers who travel in and out of London on certain rail routes could be in line for compensation, as the operators have been accused of overcharging rail users.

Justin Gutmann, a consumer rail campaigner, is representing those affected in two lawsuits that are being dealt with together. He has instructed the law firms Charles Lyndon and Hausfeld & Co LLP to represent him. The first is worth £ 73.3m, involving Govia

Thameslink Railway Limited, Govia Limited, the Go-Ahead Group plc and Keolis UK Limited, which operate Great Northern, Southern, Gatwick Express and Thameslink routes.

The second is a £93m lawsuit involving First MTR South Western Trains Limited, Stagecoach South Western Trains Limited and London & South

Eastern Railway Limited, which run the Southeastern and South Western rail franchises. Mr Gutmann is alleging the companies did not make boundary fares sufficiently available for Travelcard holders to buy, meaning many paid a higher fare than necessary.

You could be eligible for compensation if you owned a TfL Travelcard from

October 2015, and bought a rail fare from a station within the zones of your card to a destination outside the zones. This opt-out class action is being contested by the rail firms.

A spokesman for South Western Railway said: “We believe all the ticket options available are in line with legal and regulatory requirements, and we will continue to robustly defend our position in this case.”

Go-Ahead, the company that owns GTR, said: “We consider this claim to be flawed, and we dispute the allegations within it. We will be defending our position robustly.”

SONY PLAYSTATION Payout estimate £60–£560

Allegations that 8.9m customers overpaid for games

If you are a Sony Playstation customer, you could be owed hundreds of pounds. Alex Neill, from Consumer Voice, is leading a claim against Sony on behalf of 8.9m customers who, it is alleged, may have overpaid for games and in-app purchases via the Playstation store. A £ 5bn group claim has been submitted to the courts.

You could be eligible if you own, or have owned, a PS4 or PS5 from August 2016, and spent money buying games or in-app purchases. A complaint was lodged by Ms Neill at the Cat in August last year. She is awaiting approval from the court to bring this claim.

Sony Playstation has been approached for comment.

VOLKSWAGEN Payout estimate £2,000

High Court settlement for 90,000 drivers over software

More than 90,000 drivers are to get payouts of £2,000 from Volkswagen after it settled a High Court claim over the installation of software in its cars to manipulate pollution data on tests.

The claim was brought ( on an “opt- in” basis) by consumers in the UK, and had been due to go to trial in January this year. When it settled in May last year, the German carmaker said it had made no admission of liability, but described a settlement as the “most prudent course of action commercially”.

VW will pay out £193m.