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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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283 thoughts onKlarna Class Action Alleges ‘Buy Now, Pay Later’ Claim Misleads Customers
Please add me to this class action
Klarna said that I could pay and not receive additional charges. They lied and have charged me rediculous interest.
Add me
Klarna said that I could pay and not receive additional charges. Th hey lied and have charged me interest.
You know when the due date is, so if u don’t have the money in your account or don’t have enough and the bank allows the transactions that’s your faults….take it up with the banks…I’ve been with Klarna, Afterpay and Affirm.. everything is explanatory.
I agree with you. They let you know when the money is going to be deducted, therefore you must have the money in the bank or put it in the bank. It’s a no brainer.
I have used them all and I’ve had no problems. If you don’t have the money in your account, that’s your problem. Not theirs!!
The service is very clear when you sign up. It’s nobody’s fault but your own if you don’t have money in your bank account! You know your payment dates before even checking out and you even get an email and text reminder before the payment is processed. Don’t blame Klarna because you don’t know how to manage your money!
You know when the due date is, so if u don’t have the money in your account or don’t have enough and the bank allows thr transactions that’s your faults….take it up with the banks…I’ve been with Klarna, Afterpay and Affirm.. everything is explanatory.
Super annoying when you delete one bank card to add another for payment because the other card had money, and klarna takes it off the old one even though I deleted it!!!!!!!!!!! Why are you saving my card info after I deleted it!!!!
My experience is once you’ve set an order up using a certain card it will always take it from the same card or account until it’s pd off.
The same thing happened to me. They charged and took money out my account that wasnt there. I also had a mysterious order that i dont recall ordering and when i clicked to see what it was i ordered it told me item picture and description not available. I payed for that whole 80 dollar order and didnt even realize it until the last payment.
Add me too
Yes. Because I forgot to transfer money on the date that Klarna CLEARLY set for me to pay before even checking out for the item. Buy now pay later means just that, not that the item will be free. Go after the banks for their crazy fees!
It happens to me far to often I end up either in the hole and can’t pay because of late fees, or the fee keeps going up
Please add me
ADD ME, DEFINITELY!
They got me
I love Klarna everything is laid out understandably to me of course you will get overdraft fees from your bank lol
Exactly thank you! They offer an excellent service for people who use it responsibly and use common sense. Any fees arisen are the consumers fault. Do not spend beyond your means, or remove overdraft service from your banking account its very simple.