Money transfer, virtual currency, or money service -- Confusing or missing disclosures -- Complaint #4831913
Complaint Overview
Complaint ID: 4831913
Company: Klarna Ab
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Confusing or missing disclosures
State: New Jersey
ZIP Code: 076XX
Date Received: 2021-10-21T12:00:00-05:00
Date Sent to Company: 2021-10-21T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I made a purchase for {$990.00} on XX/XX/2019. Klarna loaned the money for the purchased at 0 % interest and $ XXXX monthly payments. I was offered automatic debits to avoid missing the monthly payments. I set up auto payments. In XXXX of 2019, I went on the mobile app and scheduled an early payment in advance of the reoccurring auto debit. The $ 55 monthly payment was withdrawn from my checking account but Klarna also attempted the autodebit after this payment. Since I had already paid the monthly payment, the second payment was returned by my bank because there wasn't enough funds in my checking account to cover an additional payment. Klarna charged a returned payment fee of {$25.00} to my loan account. I reported this to them via the mobile app text. The customer service agent said it didn't matter if I made the payment early, the auto debit would still withdraw. I went back and read through their disclosures and at the time there was no information that had stated clearly how early payments would impact reoccurring auto debits. Like most companies, when a monthly payment obligation is made, there is no reason to proceed with an autodebit. So I had no reason to think Klarna was any different. They added this disputed return fee to the next autodebit and withdrew {$80.00} from my account the following month. I stopped the autodebit service and at the end of the loan, I left a balance of the fee. I contacted Klarna again and explained why I was leaving the unpaid balance and that I did not agree with their policy. I paid back the entire {$990.00} loan, with the exception of the fee. In the months since, they had added approximately {$150.00} additional late fees to that fee I refused to pay and continue to send me emails.
Frequently Asked Questions
What is Complaint #4831913 about?
Complaint #4831913 was filed against Klarna Ab regarding Money transfer, virtual currency, or money service specifically about Confusing or missing disclosures. It was received by the CFPB on 2021-10-21T12:00:00-05:00.
How did Klarna Ab respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Money transfer, virtual currency, or money service) and describe your issue in detail.
Can I see other complaints against Klarna Ab?
Yes, visit the Klarna Ab company profile at readthecomplaint.com/company/klarna-ab to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.