Consumer complaint received 2025-09-29 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: Klarna AB
State: NV

Complaint narrative:
CFPB Complaint Submission Klarna Inc. ( U.S. Division of Klarna Bank AB ) Product : Buy Now, Pay Later Company : Klarna Inc . 
Claim Number : XXXX Transaction Amount : {$870.00} Transaction Date : XX/XX/2025 Merchant : XXXX XXXX XXXX : Klarna XXXX Dispute Type : Misdelivery / Unauthorized Use / Billing Error under Regulation XXXX  Consumer Address on Record : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX I. Summary of Complaint This complaint arises from Klarnas refusal to investigate a clearly misdelivered XXXX transaction financed through its XXXX product, despite written acknowledgment by its own agent that the package was never delivered to my address. Klarna subsequently reversed that position and invoked a vague dispute limit to deny resolution, even as it continued collecting payment on the disputed transaction. 

This conduct constitutes : A violation of the Truth in Lending Act and Regulation XXXX, 15 U.S.C. 1643 ( b ) ; Procedural failure under 12 C.F.R. 1026.13 ; Evidence of bad faith and deceptive practices in handling billing error claims. 

I am requesting regulatory intervention due to Klarnas refusal to honor its legal obligations, continued billing activity, and contradictory handling of a legitimate misdelivery dispute. 

XXXX. Factual Background On XX/XX/2025, I purchased a camera lens via XXXX, financed through Klarna in XXXX installments totaling {$870.00}. This included {$790.00} for the item and {$80.00} in shipping, as shown in Klarnas internal purchase breakdown. 

XXXX tracking for the order shows delivery to an address in XXXX, XXXX city in which I do not reside and which is not associated with my Klarna account. My official Klarna billing and shipping address is in XXXX XXXX, Nevada. 

On XX/XX/XXXX, I submitted a dispute to Klarna. At the time, I mistakenly referenced a different package and uploaded an image of an empty box I believed was related. Upon reviewing the shipment records further, I realized that the {$870.00} package in question was in fact never delivered to my address. I immediately corrected my statement and explained the confusion. 

XXXX. Klarnas Written Acknowledgment of Misdelivery Klarna XXXX XXXX XXXX XXXX explicitly acknowledged the misdelivery and accepted my clarification in multiple written statements, including : I totally trust you that there was a slight confusion as this package wasnt delivered to your location. 

I agree with you that your package wasnt delivered to your address. 

If I had an option to raise a dispute I would have definitely helped you resolving the issue. 

These statements confirm that Klarnas representative accepted the legitimacy of the misdelivery claim and understood that my correction was made in good faith. 

IV. Subsequent Reversal and Bad Faith Conduct Despite these acknowledgments, Klarna subsequently reversed its position and claimed that I had introduced a contradiction. The agent wrote : Let me clarify once again now youre stating that you missed checking the shipment records earlier This reversal was not based on any new facts but appears to be a deliberate attempt to recast the dispute as inconsistent, in order to deny escalation. This reversal was made after the agent had already accepted the clarification and confirmed the package was not delivered to my address. 

Klarna then refused to escalate the case, citing a non-transparent internal dispute limit, and directed me to resolve the issue with the merchant. At the same time, Klarna continued to charge my payment method for the remaining installment amounts. 

XXXX Violations of Federal Law Klarnas conduct violates multiple provisions of federal law. 

XXXX. Violation of 15 U.S.C. 1643 ( b ) Klarna has failed to meet its burden to demonstrate that I received or benefited from the disputed transaction. The statute explicitly prohibits holding a cardholder liable for unauthorized use unless the creditor proves that : The card was used by the cardholder or with their permission ; The goods were delivered to the cardholders address ; The cardholder received a benefit from the transaction. 

None of these conditions are met. The package was shipped to a different city, no signature was obtained, and Klarnas own agent admitted the delivery did not occur at my location. 

XXXX. Violation of 12 C.F.R. 1026.13 ( c ) Under the federal billing error resolution rules, once a consumer provides notice of a billing error, the creditor must : Conduct a reasonable investigation ; Provide a written explanation or correction ; Not use internal policies to deny valid disputes when new evidence emerges. 

Klarnas reliance on a " dispute limit '' after confirming misdelivery and its refusal to escalate internally demonstrates a clear failure to comply with this rule. 

XXXX. Bad Faith and Deceptive Conduct Klarnas decision to affirm the dispute, then reverse course when escalation was requested, constitutes bad faith. The conduct suggests an internal policy of denying valid disputes once the system reaches an internal thresholdregardless of new evidence or agent admissions. 

This approach undermines consumer rights and violates the spirit and letter of the Truth in Lending Act. 

VI. Relief Requested I respectfully request that the Consumer Financial Protection Bureau take action and compel Klarna to : Immediately reverse the full {$870.00} balance and terminate all associated payment obligations ; Cease collection efforts and confirm in writing that no negative credit reporting will result ; Provide a written explanation of why the dispute was denied after agent acknowledgment ; Disclose Klarnas internal dispute limit policies and how they interface with federal legal obligations ; Implement a supervisor escalation mechanism in cases involving agent-confirmed misdelivery or billing error. 

XXXX. Supporting Exhibits Exhibit XXXX  Klarna Chat Transcript : Agent confirms package was not delivered and acknowledges slight confusion was clarified Exhibit XXXX  Klarna Payment Plan Breakdown : Evidence of ongoing charges for the disputed order Exhibit XXXX  Klarna Registered Address : Official Klarna profile showing billing address in XXXX XXXX XXXX Exhibit XXXX Klarna Decline Message : Klarna refusing dispute based on dispute limit despite misdelivery Exhibit XXXX Klarna Order Details : XXXX XXXX itemized and Klarna order reference for verification XXXX. Conclusion Klarna is attempting to enforce payment on a transaction it knows was misdelivered to an unauthorized address. It acknowledged this fact in writing, then reversed its position without basis. Its refusal to escalate or investigate constitutes a systemic failure in dispute resolution and a violation of federal law. I request immediate CFPB investigation and enforcement action. 

Respectfully submitted, XXXX XXXX XXXX

Company response to consumer: Closed with explanation