Consumer complaint received 2024-08-25
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Getting the loan — 
Company: Klarna AB (TX)

I attempted to make a purchase on XXXX website and it offered Klarna as a payment option buy now and make XXXX installments w/ 0 % interest. I was then taken to XXXX website where it asked me to enter my personal information, including my name, phone number, birthdate, address, email address, and then my credit card information. I thought they were associated with XXXX so I wasnt too concerned. After I provided all of this information and very small font, it said we MAY USE Your credit for our decision-making. It does NOT say that they were going to pull a soft pull or credit check. A screen popped up and said we can not approve this transaction. Try choosing another payment method. Which gave me options of making XXXX or XXXX payments at 20 % + interest. 
( On a sidenote : I am on the XXXX list and within XXXX minutes of me entering my information, I received at least XXXX spam phone calls. ) I got an alert on my phone that someone tried to pull my credit and realized It was probably them so I unfroze and unlocked my credit. I attempted to rerun the purchase the next day, and experienced the same process/response. Then I searched for a customer service number that I could call to determine how this decision was made, since I have an XXXX XXXX XXXX and it also said I had been approved for {$2600.00} credit with them and was only trying to utilize {$400.00}. 

The verification process to be sure that I was the actual applicant/consumer was nonexistent. I was only asked to provide my name in full. Apparently, they go by your phone number, which they dont even ask for, because THEY have to CALL YOU back when you request a phone call. There is no way to directly call anyone at the company. 

I requested a call from customer service and the first representative that called back told me that they could NOT run another soft pull ( even though I told them my credit was XXXX ) and when I asked for the reason that I was denied, I was told that when I tried yesterday, it was because my credit was frozen. And when I tried again today, they said we dont show why you werent approved today on our end. I informed them that by law, they had to give me a reason or someone to contact to determine what the reason was. Their response was what we suggest to customers is to put their BANK account information (?!?! ) in & see if it would be approved that way. Mind you, they already had my credit card information. When I refused to do so, I was hung up on. 
I requested another call back and asked to speak to a supervisor and they left me on hold. I then used their Chat and ended up speaking with a representative by the name of XXXX. I asked him to speak with a supervisor and he told me that I could put in a written request and one would call me back within XXXX business days!? Then I asked him what the reason was that I was being denied for that particular option ( XXXX payments at 0 % interest, since I was approved for {$2600.00} and was only trying to use {$400.00} ), and was told that they determine my buying power based on my credit history, my payment history with Klarna and /or usage with Klarna XXXX But each transaction/option is approved individually, and is not guaranteed by buying power. I asked how they could arrive at {$2600.00} as far as buying power since he said it was based in part on credit worthiness, & since they said they couldnt/wouldnt pull/ run a soft pull on my credit. I asked AGAIN why I was being denied and was again, given the runaround. 

I requested another soft pull to be run since my credit was now unlocked. I was told that they used a third-party credit bureau to run credit, which is XXXX & really depends on when XXXX notifies XXXX my credit has been unlocked and could take up to 90 days?!? I provided screenshots directly from the CFPB website that states that by phone request, the credit bureaus have to unlock your credit report within one hour by law. I further explained that no credit bureau is going to contact THEM to let them know that MY credit has been unlocked. His response was I should contact XXXX to unlock my credit?! ( even though I stated multiple times, my credit wasnt locked and when I unlocked it ( yesterday ) ). 
The whole exchange was so insane I cant even type all of it. ( I do have screenshots of the entire conversation though. ) I then asked how I could remove all of my information and financial information and sever ties with the company and was told I would have to put a written request in. 
( At the very end of the conversation, I was told that I could go on their website and delete my credit card and request my account to be closed and they would get back to me by email as soon as possible. ) I tried to explain to them that by law I had to be given a reason for what the denial was. The agent was argumentative with me, refused to give me a reason, reference number, a last name, or an employee ID for this conversation. 

I was still left with no resolve, and I am extremely concerned that a company who runs consumers credit & has both their financial and personal information is not only A ) Extremely unfamiliar of what the laws are surrounding credit B ) There isnt anyone to contact to help resolve the matter or even allow you to immediately close your account. 

Not only am I concerned with how unlawful and unethical their procedures are, I am concerned with the fact that it seems to be a bait and switch and seems to prey on vulnerable consumers. I was just trying to keep my credit card usage ratio down ; I have the ability to pay it in full. But, I am sure there are consumers that dont have the ability to do so and then are left with a 20 % interest payment plan option. 

I notified XXXX about the situation and they said they had only been using them for a couple of months. They said they would also be looking into it. The XXXX representative simultaneously XXXX is klarna a scam while on the phone with me, & multiple pages of websites popped up. 

I am very concerned with the security of my financial and personal information now and Im having to close a credit card and hopefully my information does not show up on the dark web.