Consumer complaint received 2025-06-04 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: Klarna AB
State: IL

Complaint narrative:
In XX/XX/scrub>XXXX XXXX I purchased an XXXX XXXXXXXX through Klarnas platform, specifically a XXXX XXXX XXXX XXXX from Klarna. This storefront is presented to consumers via Klarnas mobile application and website in a way that explicitly implies and in fact relies on the consumer 's belief that they are purchasing directly from XXXX or an authorized XXXX reseller. At no point during the transaction, order confirmation, or shipping process was I informed that the actual seller was a third-party vendor. Klarna not only failed to disclose the sellers identity, but they also acted as the merchant throughout the process, handling payment processing, order confirmation, return label generation, and customer service. Klarna thereby assumed the role of merchant of record, regardless of who may have been in the background. 

On XX/XX/scrub>XXXX XXXX XXXX I initiated a return for the XXXX XXXX directly within Klarnas app. Klarna generated a prepaid UPS shipping label and instructed me to return the package to the following address : Klarna XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I followed all instructions, and the product was delivered successfully to Klarnas designated return center on XX/XX/year>, at XXXX XXXX, with delivery signed for by XXXX XXXX XXXX tracking number XXXX. I retained and submitted all documentation, including the shipping receipt and delivery confirmation. 

Since then, Klarna has failed to issue a refund, nor have they formally acknowledged that the return process has been completed. Instead, their app continues to display the status : Waiting for XXXX from Klarna to confirm. This message is grossly misleading. I contacted XXXX directly, and their support team confirmed that they have no record of this order, that it did not originate from XXXX or its official retail systems, and that Klarna not XXXX is responsible for fulfilling and refunding the purchase. 

Despite this clear accountability, Klarna has repeatedly instructed me to contact the merchant, a command which defies logic since Klarna is the party that initiated the sale, processed the payment, generated the return label, received the product, and facilitated every step of the transaction. At no point was I in contact with or even aware of any third-party merchant. 

I have made multiple good-faith attempts to resolve this issue directly with Klarna : XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX : I was informed the return was under review. 

XX/XX/XXXX ( XXXX ) : Klarna stated the matter would be resolved within XXXX days and assured me I would not be billed further. 

XXXX XXXX ( Phone ) : A Klarna representative confirmed receipt of the return and once again promised that no further charges would occur. 

XX/XX/XXXX ( Chat ) : I followed up after no progress and was told the matter had been escalated. 

XX/XX/XXXX ( Chat ) : I received vague, copy-paste style replies riddled with grammatical errors and received no substantive update. I was told to expect an email escalation summary, which I never received. 

To date, Klarna has possession of the returned item, has acknowledged the dispute, and yet continues to charge me for a product I no longer have in my possession. I have neither the product nor the refund. Klarna has both the merchandise and my money. This is not simply poor service it is fraudulent and unlawful conduct. 

To make matters worse, Klarna recently disclosed for the first time and only after repeated complaints that the actual seller was an unknown third-party vendor called XXXX. XXXX is not listed anywhere in the original purchase, checkout, confirmation, or return process. Klarnas introduction of this party only after they failed to resolve the return represents a deliberate attempt to evade accountability. Klarna accepted my money, issued the shipping label, received the product, and handled all post-sale communication. They can not retroactively deny being the merchant of record. 

Why this is unlawful : Klarnas conduct constitutes a violation of several consumer protection laws and standards, including but not limited to : Federal Trade Commission Act, Section 5 ( 15 U.S.C. 45 ) : Prohibits unfair or deceptive acts or practices in or affecting commerce. Klarna 's misrepresentation of its relationship to XXXX and failure to disclose the true seller constitutes a clear violation. 

Electronic Fund Transfer Act ( 15 U.S.C. 1693 et seq. ) : Klarna processed an electronic payment for a good that was returned and received, but has not issued a refund or made reasonable efforts to resolve the issue.

Uniform Commercial Code Article 2 : Under UCC 2-301 and 2-703, the seller ( Klarna ) accepted the return of goods and is obligated to issue a refund. Their refusal constitutes a breach of contract. 

State-level Unfair and Deceptive Acts and Practices ( UDAP ) statutes : Klarna 's actions violate numerous state consumer protection laws regarding disclosure, refunds, and fraudulent merchant representation.

Company response to consumer: Closed with explanation