On Jul. 4, NOR CPA said firm must pay fine if does not change service.
NOR CPA said Klarna must pay compulsory fine if does not change payment solution.
Believes Klarna Bank AB breaks law by offering payment solution Buy now, Pay later.
Overview
The popular payment solution Buy now, Pay later (BNPL) is a credit agreement.
Strict legal requirements then apply which Klarna must follow when offers the service.
To enter into credit agreement consumers must apply for credit and sign agreement.
It is also legal requirement whoever offers credit must carry out credit assessments.
Klarna does not do this for Buy now, Pay later service and that means people get the opportunity to buy things on credit they cannot necessarily afford to pay for.
Klarna payment solution Buy now, Pay later must by law be same as using credit card.
Consumers must have right to complain to Klarna in event of fraud, defects in product.
Further, consumer must have all other rights that one has in a credit agreement but Klarna does not give consumers these rights today.
Klarna is a major player in the Norwegian market, and NOR CPA believes it is serious that it fails to follow the regulations for this service.
This goes beyond the many consumers who use its payment services; so, if Klarna does not change practice by Nov. 1, 2024, NOR CPA will, with effect from same date, impose compulsory fine of NOK 9 million on Klarna for each week offenses continue.
Jul. 4, 2024 NOR FinKN Release
On Jul. 4, 2024, NOR FinKN issued release referring to NOR CPA decision on Klarna.
To have a complaint processed in NOR FinKN, it is a condition that matter has first been tried to be resolved with the company, thus, Klarna must be contacted first.
If not resolved, can send complaint to NOR FinKN using complaint form (not by email).
