Consumer complaint received 2025-06-06 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: Klarna AB
State: AZ

Complaint narrative:
On XX/XX/year>, I attempted to make a payment of {$630.00} through the Klarna appan amount that I had been notified was due via a push notification received on XX/XX/year>. Upon logging into the app, I was shocked to see the payment amount had escalated to {$2400.00}, reflecting a significant and unexplained increase. My account currently shows missed payments for XXXX, XXXX, and XX/XX/year> ; however, I was willing to bring the account current by paying the amount previously indicated to me. 

It is important to note that the notification I received came over the weekend, limiting my ability to access the banking account necessary to update the payment method. By the time I was able to attempt a resolution on a business day, the amount due had increased substantially. On XX/XX/XXXX, when I attempted to adjust the payment amount in the Klarna app, there was no available option to do so. 

I contacted Klarna customer service via the in-app chat, requesting assistance in making the {$630.00} payment and updating my payment method. I explicitly communicated my intent to bring the account current and reinstate auto-pay using the correct banking details. The representative refused, stating this was not possible due to the past-due status. I then requested to speak with a live agent, and was advised to call the customer support number. 

When I called Klarna, the phone representative initially told me that I could submit a screenshot through the chat to confirm I was unable to change the payment amount in the app. Following their direction, I re-entered the chat but was then told that screenshots were not accepted. On a subsequent call, another Klarna representative contradicted the previous guidance, stating that I had no option but to pay the full {$2400.00}. 

This amount is excessive, representing more than 90 % of the total installment loan amountan unreasonable and harmful financial burden. I requested my Truth in Lending Act ( TILA ) documentation to verify what terms I agreed to, particularly regarding late fees and balloon payments. I was informed that Klarna does not retain such documents beyond 12 months, and I was simply directed to the general terms on their website. This failure to provide legally required documentation constitutes a violation of my financial data access rights under both TILA and the Consumer Financial Protection Bureaus ( CFPB ) guidance on open banking and consumer access to data. 

XXXX platform does not provide adequate consumer access to essential financial information such as signed agreements, detailed fee disclosures, and itemized statements of past-due balances. Most financial institutions provide consumers with visibility into their account history, terms of service, and the ability to download personal financial data. Klarna 's refusal to make this information accessible through its app, website, or support channels is unacceptable and violate Personal Financial Data Rights.

Additionally, Klarnas handling of my account appears to violate several provisions of Regulation Z under the Truth in Lending Act, specifically Sections 1026.54 and 1026.55, which limit the imposition of finance charges and prohibit arbitrary increases in fees without proper notice and disclosure. The sudden increase in the amount duemore than 9 times the expected monthly installmentconstitutes a deceptive and abusive practice, in direct violation of UDAAP ( Unfair, Deceptive, or Abusive Acts or Practices ) standards. 

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Company response to consumer: Closed with explanation