Klarna Buy Now Pay Later Fees Class Action Overview:
- Who: Klarna is being sued by a California customer who says he was hit with bank fees from using the service despite being told it was free.
- Why: The plaintiff says Klarna targets young and poor people, misleading them to think there will be no fees associated with the service, yet they later get hit with bank overdraft fees.
- Where: The case was filed in a California federal court.
Klarna tricks young and poor customers into using its “buy now, pay later” service by misrepresenting the true operation and risks of the service, a new class action lawsuit alleges.
Plaintiff Nathan Hale filed the class action lawsuit against Klarna, Inc. Apr. 28 in a California federal court, alleging violations of California consumer laws.
He said customers had been deceived into using the company’s buy now, pay later service, because they were misled about the true risk of the service.
“These risks include the real and repeated risk of multiple insufficient funds fees or overdraft fees imposed by users’ banks as a result of automated Klarna transfers from consumers’ checking accounts,” the lawsuit states.
Klarna Targets Low-Income People, Class Action Alleges
The class action alleges that Klarna specifically targets poor consumers and those struggling to make ends meet on a week-to-week basis.
Hale says Klarna markets itself as a service that allows users to pay for purchases at a later date with no interest, fees or hassle.
“These representations are false. In fact, there are huge, undisclosed fees and interest associated with using the service,” the lawsuit states. “This massive risk is known to Klarna but is omitted from all of its marketing.”
Hale says, in his case, he had a $42.84 payment deducted from his account by Klarna, which then caused him a $29 overdraft fee from his bank.
Founded in 2005, Klarna has expanded to 17 countries and serves 90 million shoppers, the lawsuit says. It is now one of the biggest buy now, pay later services in the United States, built on the backs of people living paycheck to paycheck, Hale alleges.
Hale is looking to represent anyone who used Klarna and incurred an overdraft fee as a result of a Klarna repayment. He’s suing under California consumer and business laws.
Hale is seeking certification of the class action, restitution of all fees taken as a result of Klarna deductions, compensatory damages, fees, costs and a jury trial.
The news comes after Klarna was hit with a similar class action in 2021 alleging its buy now, pay later service specifically targets poor consumers struggling to make ends meet and overburdens them with undisclosed bank fees and interest.
Have you used Klarna and been hit with bank fees? Let us know in the comments!
The plaintiff is represented by Scott Edelsberg of Edelsberg Law, P.A.
The Klarna Class Action Lawsuit is Nathan Hale v. Klarna, Inc., Case No. 3:22-cv-00598-DMS-AHG, in the U.S. District Court for the Southern District of California.
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296 thoughts onKlarna Class Action Alleges ‘Buy Now, Pay Later’ Claim Misleads Customers
I had purchased a fitness app purchase through Klarna in which total out to $109 I had made each payment besdies the last one. I didnt make the payment because May 2025 I had opened up the claims regards the app didnt give me full access to the app. I tried reaching out to the fitness coach who made the app on May 30, 2025 in which she never reached back out sadly communication was done through email since there was no phone number just email and po box. I opened claimw ith klarna and they requested evidence in which I advised its an app not an actual product. I sent them screenshots and etc. They told me to allow 21 days to hear back since they will try to reach out the fitness app coach as well. I waited and waited and till I got an email from Klarna saying they closed my case due to not providing evidence requested. I spoke to a representative in chat which I have screenshots of it and they told me I never provided them evidence which was false. They once again opened a claim and same thing happened I waited and they closed it with same excuse. They did this to me 5 times until I see nearly 4 months have gone by and no resolution aside feom them sayi g they will take the loss of whatever I owed which was $28.33. I requested that I wanted full refund since all they did was do me a run around. I asked to be transferred for supervisor on the phone but they said they dont have one but they only communicate via email. The representative told me to wait 2 days and they will contact me. I reached out after 2 days becausei never got a response. I see three weeks gone by and get a letter in the mail saying they had closed the case and moved this due to no payment to a debt collector. I reached out to klarna and they told me the case has been closed due to no evidence provided from me. I just need something done at this point for the time I lost and money I lost. They are very unprofessional and quick to dismiss someone. I have never had this worse experience with customer service but this has been hell.
Klarna is charging me for products and services I never received and it’s affecting my credit now. I have been unable to get this resolved via, e-mail, chat, or phone calls with them. Please add me.
I was affected by this app This app is very shady I uploaded money and can’t use the service so I ask for my money back and they refuse to refund me my money back, telling me the don’t have a that type of feature they are scamming people
Hi I need to join a Lawsuit or file one against Klarna. They have done nothing but commit fraud. They have stolen my money and lied to me. I have contacted Klarna multiple times via phone call, email and Chat. No one I speak to is capable of resolving my simple issues. Please help.
I used klarna and the same thing happened to me.