Consumer complaint received 2025-01-31 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: Klarna AB
State: MD

Complaint narrative:
In XXXX, there was an option that you could select per each payment plan to turn off auto pay ... .once you did that, you could make a manual payment on the due date. In XX/XX/XXXX, I noticed that the option to turn off auto pay no longer existed. I reached out to customer service on XX/XX/XXXX. The chat is attached in the file section of this complaint, but I will restate the sum of the conversation here. 

I requested to turn off auto pay through customer service since there wasn't a consumer facing option to do so. The representative whose name is XXXX XXXX, gave me XXXX step directions to do so, however, there still was not an option to turn off auto pay despite customer service directions, so I continued to ask for help. 

First, the representative claimed that I couldn't turn it off because I had an upcoming payment ( that doesn't make sense, you should always be able to turn off auto pay unless the payment is already processing which in case it was not. I contacted them before the due date of my payment so there was no payment processing ). 

Then, I asked the representative to turn it off from their end, and I was informed that they could not turn it off either. 

Secondly, the representative claimed that it was a technical issue and suggested uninstalling and reinstalling the application on my mobile device and to wait XXXX hours. I had already tried that option before contacting customer service, so I continued to ask for another resolution. 

The representative told me that I would be able to turn off auto pay for later dated due dates, but the option is not available for any plan regardless of the due date. 

I reached out the next day to chat again with another representative, " XXXX '', who suggested removing the card, but even they were unable to do so without adding another card simultaneously. There was again no option to remove auto pay. I have attached those screenshots to the file as well. 

Both chats were disconnected even though I was still active in the chat. Klarna representatives have previously disconnected me from other chats discussing the same matter. 

The Electronic Fund Transfer Act ( EFTA ) enforced by the Consumer Financial Protection Bureau ( CFPB ) provides consumers the right to cancel automatic payments at any time by notifying the company. Additionally, it is illegal for companies to make it unreasonably difficult for you to cancel autopay or withdraw authorization for recurring payments. 

Klarna is violating this law by removing the option for consumers to cancel automatic payments AND by making it extremely difficult to receive help from a representative since they themselves are telling me they can not do anything. They removed the button next to payment plans, where you previously could have clicked to turn off autopay. Now, I have to chat with a representative in an attempt to get help. The wait times I experienced were over XXXX minutes and the response times were not immediate either.

Company response to consumer: Closed with explanation