Consumer complaint received 2025-11-03 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: Klarna AB
State: CA

Complaint narrative:
CFPB, I am submitting this complaint against Klarna, the financial-technology company offering buy-now, pay-later and revolving credit products to U.S. consumers. Despite maintaining a responsible financial record and demonstrating consistent income, I have been repeatedly denied or restricted from using Klarnas credit services.

Each denial has been unexplained, vague, and unjustified, leaving me unable to understand or correct the basis for these decisions. I have made multiple attempts to engage responsibly with Klarnas platform, yet I have not been granted any opportunity to establish a credit relationship or demonstrate repayment capability.

This pattern of denial appears unfair, arbitrary, and possibly discriminatory. Klarna advertises accessibility and flexibility, but its actions have consistently excluded me without transparency or rationale.

Concerns Regarding Fair Lending and Potential Discrimination I strongly believe that my race may have influenced Klarnas credit decisions. Under the Equal Credit Opportunity Act ( ECOA ) and Regulation B, creditors are prohibited from considering race, color, or national origin when making credit determinations.

Klarna relies heavily on automated decision-making algorithms that lack human oversight. These systems may be producing disparate impacts on applicants of certain racial or demographic backgrounds, resulting in systematic exclusion from credit opportunities.

It is deeply concerning that despite my stable income, responsible financial behavior, and efforts to maintain good standing with other lenders, Klarnas system continues to deny me approval without any meaningful review. This raises questions about whether Klarnas algorithms and internal models comply with fair lending principles and whether the company is exercising appropriate monitoring for algorithmic bias or disparate impact.

Consumers should not face invisible barriers simply because of automated systems that are shielded from public scrutiny.

Transparency and Accountability Issues Klarnas adverse-action notices are vague and noncompliant with the standards established under the Fair Credit Reporting Act ( FCRA ).

When denying an application, Klarna typically sends a short automated message such as We were unable to approve this purchase, with no details on : Which credit bureau or data source was used ; What specific factors caused the denial ; or How to dispute or verify the information.

This lack of transparency leaves consumers powerless to correct potential errors or understand the underlying decision. Such practices undermine both consumer confidence and the integrity of the broader credit system.

A fintech company operating under U.S. jurisdiction must be held to the same transparency, disclosure, and fairness standards as traditional banks. Klarnas current practices fall far short of these expectations.

Request for CFPB Investigation I am respectfully requesting that the Consumer Financial Protection Bureau initiate a full and comprehensive enforcement investigation into Klarnas lending, scoring, and credit-decision practices. Specifically, I urge the Bureau to : 1. Determine whether Klarnas automated underwriting or credit-approval systems create disparate impacts based on race, national origin, or other protected classes.

2. Evaluate whether Klarnas adverse-action notices comply with FCRA requirements for specificity, accuracy, and consumer disclosure.

3. Examine Klarnas compliance with the Equal Credit Opportunity Act and Regulation B, ensuring that its algorithms and data sources do not enable discrimination.

4. Assess whether Klarnas advertising representations about accessibility and inclusiveness accurately reflect its actual approval patterns.

Requested Enforcement Action Given the seriousness and persistence of these concerns, I request that the CFPB consider strong enforcement measures if violations are found. Specifically, I ask that the Bureau : 1. Impose civil penalties or sanctions against Klarna if evidence confirms discriminatory or unfair lending practices.

2. Require Klarna to undergo a comprehensive fair-lending audit conducted by independent third-party examiners.

3. Mandate corrective actions and public reporting of the companys compliance with ECOA and FCRA obligations.

4. If systemic misconduct or discrimination is verified, suspend or revoke Klarnas authority to offer consumer-credit products in the United States until full compliance and remedial action are demonstrated.

The CFPB has the responsibility to ensure that any financial entity operating within its jurisdiction treats all consumers fairly and lawfully. A company that repeatedly excludes applicants without transparency, fairness, or accountability should not be permitted to continue operating unchecked.

Personal Impact Klarnas repeated denials have caused both personal frustration and practical financial harm. I have worked hard to maintain a responsible financial record, only to face rejection by a company that claims to be inclusive. The experience has left me questioning whether I am being judged by factors unrelated to my true creditworthiness.

These arbitrary denials have limited my ability to make everyday purchases and participate fully in the modern consumer economy. It is profoundly discouraging to see a company with global resources and advanced technology treating applicants in this opaque and dismissive way.

Financial inclusion means fairness, not exclusion. No consumer should feel invisible or misjudged by algorithms that may harbor built-in bias.

Company response to consumer: Closed with explanation