Consumer complaint received 2026-01-23 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: Klarna AB
State: NV

Complaint narrative:
I am filing a complaint regarding Klarnas handling of a billing dispute for a hotel booking paid using my Klarna credit account. 

I booked a hotel in XXXX XXXX, XXXX, through the XXXX XXXX  application and paid for the stay in advance, XX/XX/XXXX using Klarna credit card. The property was listed under a generic, non-branded name ( not a recognizable hotel chain such as XXXX or XXXX ). I relied on XXXX as a platform because I had previously completed a successful trip through XXXX and trusted the service. 

The booking was for XX/XX/XXXX through XX/XX/XXXX. I arrived at the property on XX/XX/XXXX at approximately XXXX PM, checked in, and received the room keys. Upon entering the room, it was immediately clear that the room was materially different from what was advertised on XXXX. The layout, setup, and condition did not match the listing photos or description. The was some spooky hole on the wall, that supposed to be a closet, in front of the bad. 

I attempted to resolve the issue immediately. The on-site receptionist stated that she was not responsible for the rooms and explained that the building contained multiple hotels and privately owned apartments. She stated she could only assist if the property owner contacted her directly. The property owner or host was unreachable that night through the XXXX app, phone calls, or messages. 

While still at the property, I contacted XXXX customer support by phone and spent over an hour speaking with an agent who also attempted to reach the property. Neither of us was able to contact anyone from the hotel. The XXXX agent suggested that I stay in the room, but I explained that I was uncomfortable and unwilling to stay even one night in a room that was not as described. 

Because no assistance was available and no alternative room was offered, I left the property the same evening on XX/XX/XXXX, returned the key, and did not stay overnight or use the service at all. I immediately booked alternative accommodations and stayed at XXXX different hotels from XX/XX/XXXX and XX/XX/year>, for which I can provide booking and payment proof. 

The property owner only responded the following day, XX/XX/XXXX, around midday, long after the issue occurred. XXXX later informed me that no refund would be issued, not even for unused nights. I offered to pay for XXXX night only due to my late arrival, but the property refused. XXXX stated that their policy did not allow any refund. I explained that I did not cancel the booking I checked in, found the room was not as advertised, and left due to misrepresentation. 

On XX/XX/XXXX, the day after I left the property, I received an automated email from XXXX thanking me for my stay and asking me to rate my experience. This communication indicates that XXXX had already checked me out on their end, despite the fact that I did not stay at the property and had already reported the issue. This further confirms that the booking was treated as completed by the platform while the dispute regarding misrepresentation and non-use of the service was still unresolved. 

On XX/XX/XXXX, after the stay period had already ended and after all refund requests were denied, the property sent a message stating something similar to We hope you enjoyed your stay in XXXX. Given the circumstances, this message was inappropriate and further demonstrated the lack of good-faith handling. 

Immediately after leaving the property on XX/XX/XXXX, I booked another hotel for the night XXXX XXXX. Once it was clear that neither the property nor XXXX would provide assistance, and only sent email that they will not refund for reasons like that, I filed a dispute with Klarna for service not as described. On XX/XX/XXXX. I did not wait until the end of the stay period. I submitted extensive evidence, including photos of the room, screenshots of the XXXX listing, proof of communications, call history with XXXX, proof of alternative hotel bookings, and payment records. 

After approximately XXXX month and several days, Klarna informed me that the payment ( {$610.00} ) was reinstated, stating that I did not provide sufficient evidence. I contacted Klarna support, and the representative confirmed that I had provided all required documentation and could not explain why it was not reviewed. The payment was frozen again, and the dispute process restarted. 

I contacted XXXX once more, and they again refused a refund, citing cancellation policy. I reiterated that this was not a cancellation, but a rejection of a misrepresented service after check-in. 

After another extended review period, Klarna issued a second decision stating that XXXX claimed the room was provided correctly. However, when I contacted Klarna support afterward, I was told that XXXX never responded to Klarna at all. Despite the merchants lack of response, Klarna ruled against me and permanently reinstated the charge. 

Throughout this process, Klarna provided changing and contradictory reasons for denying my dispute : Initially stating no evidence was provided Then stating the evidence was not convincing Then stating the merchant claimed the service was correct Then admitting the merchant never responded At no point did Klarna request clarification from me, contact me for additional information, or conduct what appears to be a fair investigation. Despite my repeated efforts to resolve the issue immediately contacting the property, XXXX, and Klarna I am being forced to pay for a service I did not use and did not receive as advertised. 

I requested escalation as a chargeback, which is my right as a consumer under these circumstances, but Klarnas escalation team also failed to properly review the evidence or investigate the merchants lack of response. 

As of now, approximately XXXX XXXX XXXX XXXX XXXX have passed with no fair resolution. I am requesting that this charge be permanently removed, that Klarna correct its handling of this dispute, and that the CFPB review Klarnas dispute investigation practices in this matter.

Company response to consumer: Closed with explanation