v1.0.4

Published on April
25,
2022

Important Disclosures About Your Klarna Card

Klarna Card is issued by WebBank, pursuant to a license from Visa U.S.A. Inc.

Account Opening Disclosures

Fees

Monthly
Fee

Penalty
Fee

●   Late Payment

$47.88 annually ($3.99 per month). However,

this fee is waived for the ûrst 12 months.

Up to
$7

Billing
Rights: Information on your rights to dispute transactions and how to exercise those rights is

provided in your Cardmember Agreement.

Military
Lending
Act
Disclosure: To receive important disclosures and payment obligation

information about this Agreement verbally, please call 844-KLARNA1 (844-552-7621).

CARDMEMBER AGREEMENT

General
Information:
This Cardmember Agreement and the Important Disclosures About Your

Klarna Card ("Important
Disclosures") (together, the "Agreement") is the agreement for your Klarna

charge card account issued by WebBank (your "Account").  Key terms are deûned throughout this

Agreement, including in the "Deûnitions" section, below.  The words "we," "us," "our" and

"WebBank" each mean WebBank.  The word "Klarna" means Klarna Inc., our service provider that

1

 
 
 
 
 
 
assists us in servicing your Account.  The words "Cardmember," "you" and "your" each mean all

persons whom we approve to use the Account, and any person who agrees to be responsible for

payment of the Account.  Please keep a copy of the Agreement for your records and read it carefully.

Arbitration
Notice:
SECTION
33
OF
THIS
AGREEMENT
IS
AN
ARBITRATION
PROVISION

WHICH
WILL
APPLY
TO
YOU
UNLESS
(1)
YOU
ARE
A
COVERED
BORROWER
UNDER
THE

MILITARY
LENDING
ACT
ON
THE
DATE
YOU
OPEN
THIS
ACCOUNT,
OR
(2)
YOU
REJECT
THE

ARBITRATION
PROVISION
AS
PROVIDED
IN
SECTION
33. 
IF
APPLICABLE,
THE
ARBITRATION

PROVISION
WILL
SIGNIFICANTLY
AFFECT
YOUR
RIGHTS
IF
A
DISPUTE
ARISES
BETWEEN

YOU
AND
US. 
FOR
EXAMPLE,
YOU
WILL
NOT
BE
ABLE
TO
BRING
OR
PARTICIPATE
IN
A

CLASS
ACTION
RELATING
TO
MATTERS
ARISING
UNDER
THIS
AGREEMENT.

1. 
 
 
 
 
Definitions:

The following terms
as used in this Agreement mean the following:

"Card" means any charge card, Account number, virtual account or other access device issued by

us to you, or any other form of access device that can be used to access credit on your Account. 

Certain mobile phones or other electronic devices can be provisioned to function as a Card, such as

by storing and/or accessing Account data (for example, through a mobile wallet).  Transactions using

such devices can proceed like an online transaction over the internet, or can function like a

traditional card.  Any such electronic device constitutes a "Card" under this Agreement.  

"Spending
Limit" means the maximum amount of credit that can be accessed using your Account

at any given time.

"Minimum
Payment
Due" means the minimum amount you must pay us to remain in good

standing.  Your Minimum Payment Due will be shown on each Statement and is due within 21 days

of when we reasonably attempt to deliver your Statement in accordance with federal law.

"Preferred
Payment
Date" is the date shown on each Statement by which we prefer you to pay at

least the Minimum Payment Due shown on such Statement (i.e., the "Payment Due Date" disclosed

on an applicable Statement). The Preferred Payment Date will typically be 11 days before the date

you must pay the Minimum Payment Due to avoid a Late Fee.  If you enroll in automatic payments,

we will generally attempt to debit the applicable Minimum Payment Due on the Preferred Payment

Date.

"Purchase" means using your Card (including through a mobile device or mobile wallet) to purchase

or lease goods or services.  "Purchases" generally include any credit adjustments related to a

Purchase.

2

"Purchase
Power" means your Spending Limit minus the outstanding balance on all Klarna-

branded payment products and the outstanding balances on any other Klarna-branded credit

products you may have.

"Statement" means a periodic billing statement we will provide to you if and as required by

applicable law.

2. 
 
 
 
 
Acceptance and Use of This Account; Promise to Pay:

Acceptance and Use of This Account; Promise to Pay: By accepting a Card, activating or using the

Account, or allowing someone else to do so, you agree to and accept the terms of this Agreement.

You may use your Account only for personal, family, or household purposes, and not for any

business, commercial or investment purpose. You promise to pay us the amount of all transactions,

fees and other amounts charged to your Account.

You may make Purchase transactions up to your Purchase Power either by presenting your Card to a

merchant, or by using your Card or Account number over the telephone, internet or some other

electronic method, to complete such transactions.

You may be able to establish recurring periodic billing arrangements with various merchants, and it

will be your responsibility to ensure such merchants are provided with current Account information. If

your Account information changes, such as a change in Account number or Card expiration date,

you consent to our providing such new Account information, at our discretion, to any or all such

merchants, but we are not obligated to do so. If your Account is closed or your charging privileges

are suspended, you understand that you may need to contact the applicable merchant(s) to ensure

that the automatic transactions stop.

You may not use your Account for balance transfers, to obtain cash advances or for "quasi-cash"

transactions, which include, but are not limited to, purchases of wire transfers, money orders,

traveler's checks, foreign currency, lottery tickets, oﬀ-track bets and casino gambling chips. If you

are somehow able to use your Account for a transaction of this type, you agree to repay any

amount(s) for such transactions upon demand.

3. 
 
 
 
 
Pay in 4/Minimum Payment Due:

We generally calculate your Minimum Payment Due so that you can pay oﬀ all of the Purchases you

made in a single billing cycle in four generally equal payments. Each billing cycle is approximately

two weeks long (a "Statement Cycle"). For each Statement Cycle, we will compute your Minimum

Payment Due as follows:

3

●  We take one-fourth of the amount of all Purchases that posted during the Statement Cycle;

●  We add one-fourth of the amount of all Purchases that posted during the billing cycle that was

one cycle before the Statement Cycle;

●  We add one-fourth of the amount of all Purchases that posted during the billing cycle that was

two cycles before the Statement Cycle;

●  We add one-fourth of the amount of all Purchases that posted during the billing cycle that was

three cycles before the Statement Cycle;

●  Finally, we add any unpaid Minimum Payments Due from any billing cycles before the Statement

Cycle, and we add any unpaid Late Fees and Monthly Fee.

This gives us the Minimum Payment Due for the Statement Cycle. In no event will your Minimum

Payment Due exceed the New Balance (including Late Fees and any Monthly Fee) shown on your

Statement. In calculating one-fourth of the sum of Purchases in a cycle, we may round up to the

nearest penny. We may, in our sole discretion, adjust down the Purchases that we include in any of

the amounts speciûed in the list above in the event that you make a payment in excess of the

Minimum Payment Due or a credit posts to your account (e.g., because you returned a prior

Purchase).

For example, if you made $100 of Purchases in your ûrst billing cycle, $200 of Purchases in your

second billing cycle and $300 of Purchases in your third billing cycle and you made no further

Purchases and all required payments on time, your Minimum Payments Due would be as follows:

●  First Statement Cycle: $25 (i.e., $100÷4)

●  Second Statement Cycle: $75 (i.e., $100÷4 + $200÷4)

●  Third Statement Cycle: $150 (i.e., $100÷4 + $200÷4 + $300÷4)

●  Fourth Statement Cycle: $150 (i.e., $100÷4 + $200÷4 + $300÷4)

●  Fifth Statement Cycle: $125 (i.e., $200÷4 + $300÷4)

●  Sixth Statement Cycle: $75 (i.e., $300÷4)

(This example involves Statement Cycles occurring in the ûrst year of the Account before the

Monthly Fee is assessed. Once we begin assessing the Monthly Fee, it will be included in the

Minimum Payment every two or three cycles depending on the date it is assessed.)

4.          Fees.

4

a)         Late
Payment
Fee: 
A Minimum Payment Due for a speciûc Statement Cycle will be past

due if it is not received in the manner speciûed for payments on your Statement on or before the

following date and time: 11:59 p.m. Eastern Time on the 21st day after we reasonably attempt to

deliver your Statement in accordance with federal law. If we do not receive a Minimum Payment Due

by this time, we will charge you a Late Payment Fee equal to the lesser of (i) $7 or (ii) 25% of the

outstanding balance indicated on the applicable Statement.

b)         Monthly
Fee: Beginning on the one-year anniversary of your Account and monthly thereafter,

we will charge you a Monthly Fee equal to $3.99. We will charge the Monthly Fee even if there is no

balance on your Account in a given month. If you wish to avoid an upcoming Monthly Fee, you

should close your Account before it is assessed.

5. Spending Limit and Purchase Power:

You agree we may change your Spending Limit at any time subject to applicable law. You agree

never to use your Card when the use would exceed your Spending Limit, and that we are not

obligated to extend credit to you for an amount that would cause your outstanding balance to

exceed your Spending Limit, or for any amount if your outstanding balance is already over the

Spending Limit.

If you make a transaction that would cause you to exceed your Spending Limit, we may (a) allow the

transaction without increasing your Spending Limit; (b) allow the transaction without increasing your

Spending Limit and treat that amount as immediately due, or (c) refuse the transaction. If we permit a

transaction that causes your Account to go over-limit, it does not increase your Spending Limit and

does not mean that we will do so again in the future. You will pay any amount(s) which exceeds your

Spending Limit, upon demand.

In
calculating
the
amount
you
can
spend
with
your
Card
on
any
particular
transaction,
we
will

subtract
from
your
Spending
Limit
amounts
that
you
owe
on
any
Klarna-branded
payment
or

credit
product,
including
the
Card,
Pay
Later
in
30,
Pay
in
4,
Financing
and
the
Klarna
Credit

Account. This is your Purchase Power. For example, if you have a Spending Limit of $500, a Card

balance of $100 and a Pay Later in 4 balance through Klarna (a non-Klarna Card transaction) of

$100, your Purchase Power which is your available to spend on your Klarna Card will only be $300

(not $400). As a result, your Purchase Power may decrease or increase even though your overall

Spending Limit on the Card remains the same. Your Purchase Power will be set forth in the Klarna

app that you use to access your Account.

If you make a transaction that would cause you to exceed your Purchase Power, we may (a) allow

the transaction while continuing to subtract amounts in in the future that you owe on Klarna-branded

payment and credit products; or (b) refuse the transaction.

5

If the transaction is refused, we may notify the person who attempted the transaction that it has

been refused.

6. 
 
 
 
 
Illegal Activities and Card Use:

You agree not to use your Card or Account to engage in illegal activities, including, but not limited to,

certain internet gambling.  If you use your Card or Account to engage in any illegal activity, you

understand that you will nevertheless be liable for any transactions made by use of your Card or

Account, and any related interest and fees.

7. 
 
 
 
 
Periodic Interest on Your Account:

We will not assess any interest on your outstanding Account balance.

8. 
 
 
 
 
Military Lending Act:

The Military Lending Act provides protections for certain members of the Armed Forces and their

dependents ("Covered Borrowers").  The provisions of this section apply only to Covered Borrowers. 

a)         Statement
of
Military
APR:
Federal
law
provides
important
protections
to
members
of

the
Armed
Forces
and
their
dependents
relating
to
extensions
of
consumer
credit. 
In
general,

the
cost
of
consumer
credit
to
a
member
of
the
Armed
Forces
and
his
or
her
dependent
may

not
exceed
an
annual
percentage
rate
of
36
percent. 
This
rate
must
include,
as
applicable
to

the
credit
transaction
or
account:
The
costs
associated
with
credit
insurance
premiums;
fees

for
ancillary
products
sold
in
connection
with
the
credit
transaction;
any
application
fee

charged
(other
than
certain
application
fees
for
speciﬁc
credit
transactions
or
accounts);
and

any
participation
fee
charged
(other
than
certain
participation
fees
for
a
credit
card
account).

b)         Oral
Disclosures:
Covered
Borrowers
may
receive
important
disclosures
and
payment

obligation
information
about
this
Agreement
verbally
by
calling
us
toll
free
at
844-KLARNA1

(844-552-7621).

9. 
 
 
 
 
Foreign Transactions:

6

If a Purchase is in a currency other than U.S. dollars, the payment network supporting your Account

will convert the Purchase into U.S. dollars using its own currency conversion procedures.  Currently,

the exchange rate is determined in one of two ways.  The rate will come from either the range of

rates available in the wholesale currency markets for the processing date (which may be diﬀerent

from the rate the payment network receives) or a government-mandated rate in eﬀect on that date. 

The exchange rate used may diﬀer from the rate on the date of your Purchase or its posting date. 

These rules may change without notice.

10.
 
 
 
Document Copies, Rush Card and Other Convenience 
Fees:

If you request a copy of a charge slip or other document not in connection with a billing error, or if

you request overnight delivery of a replacement card, or if you request any other special services, we

may charge a fee to your Account, subject to applicable law.  Before we do, we will disclose the fee

to you at the time of your request.

11.
 
 
 
Making Payments:

You agree to make your payments only in U.S. dollars by a means that we make available to you.  In

our discretion, we may delay increasing your available credit by the amount of any payment until we

determine that your payment has been indefeasibly collected.   We reserve the right to reject any

payment that will create or increase a credit balance on your Account as of the date we receive the

payment.  We will not pay interest on any credit balance on your Account.

Payment received in the manner speciûed on your Statement, including via electronic means such as

electronic debit or card charge, in proper form by 11:59 p.m. Eastern Time on a business day will be

credited to your Account as of that day.  Payments received in proper form after that time will be

credited to your Account as of the next business day.  We may, in our discretion, accept payments

not received in proper form, but crediting of such payments may be delayed up to ûve days following

receipt.

12.
 
 
 
Irregular Payments:

We may accept late payments, partial payments, disputed payments or payments marked with

restrictive writing, such as "Paid in Full" or similar language, without losing any of our rights under

the Agreement.  If you wish to make a payment in satisfaction of a disputed amount or balance, you

7

must send it to WebBank, c/o Klarna, Attn: Legal Department, P.O. Box 8116, Columbus, Ohio

43201 with a letter of explanation.  Despite any such language, we may deposit such a payment

without such deposit satisfying the amount in dispute or otherwise aﬀecting our right to receive

payment in full.

You may not use a post-dated check as a payment, and we may return or deposit any such check

without waiting for the date found on the check.  We are not liable to you for any expense or loss you

incur arising from the actions we may take with respect to a post-dated check.

13.
 
 
 
Allocation of Payments:

We will allocate payments and other credits in our sole discretion, subject to applicable law.

14.
 
 
 
Amendments: 

Subject to applicable law, we may change the terms of this Agreement for any reason or no reason,

and in any respect, by adding, deleting or modifying any provision, including APRs, fees, the

calculation of Minimum Payment Due and other terms.  In certain circumstances, when we are

required by law to notify you of changes to the terms of this Agreement, we will do so.  In other

circumstances we may not be required to do so.  When required by law to advise you that you have

a legal right to reject any changes we make, we will provide an explanation about how to do that. 

Changes will not apply to existing balances except where permitted by applicable law.  In some

circumstances, other aspects of your Account may change even though the terms of the Account do

not change.  We can update any address or telephone number provided in this Agreement, but we

will notify you if we do so.

15.
 
 
 
Events of Default:

We may declare you to be in default under this Agreement, to the extent permitted by law, if any of

the following events occur: (a) you fail to pay any Minimum Payment Due within 21 days of when we

reasonably attempt to deliver your Statement in accordance with federal law; (b) you breach any

other term of this Agreement or of any other obligation or agreement you have or will have with us or

our service providers; (c) you die or become insolvent; (d) a petition is ûled or other proceeding is

started under the federal Bankruptcy Code or any state insolvency statute by or against you; (e) a

receiver is appointed or a writ or order of attachment, levy or garnishment is issued against you or

any of your property assets or income; (f) we believe in good faith, that the likelihood of your paying

8

or performing all your obligations under this Agreement is impaired; or (g) you make a fraudulent,

false or misleading statement in your Account application or otherwise in connection with any other

obligation or agreement you have with us or our service providers. 

PLEASE NOTE: Residents of Idaho, Iowa, Kansas, Maine, South Carolina and Wisconsin should see

important terms regarding events of default below under "Additional Disclosures."

16.
 
 
 
Remedies on Default:

If you are in default, we may, without limiting any of our rights or remedies, take one or more of the

following actions: (a) declare all or any part of the total outstanding balance on your Account to be

immediately due and payable; (b) terminate or suspend your Account and/or your ability to make

additional transactions using the Account; (c) reduce your Spending Limit; (d) commence an action

for the collection of all amounts owed in connection with this Agreement; and (e) subject to

applicable provisions of law, charge you all reasonable collection expenses incurred by us in the

collection of amounts you owe under this Agreement, including fees of attorneys, court costs

(including costs incurred in bankruptcy and appellate court proceedings) and fees of any collection

agency to which we refer your Account.

17.
 
 
 
Waiver:

We may delay or waive enforcing our rights under applicable law or this Agreement without losing

them.  A waiver of rights by us shall not be deemed to be a waiver of other rights or of the same

rights at any other time.

18.
 
 
 
Transfer of Account:

You cannot transfer or assign your Account or your rights under this Agreement to any other person,

and any attempt to do so is automatically void and of no legal eﬀect.  You understand and agree that

we may transfer or assign all or any part of your Account balance and/or our rights under this

Agreement at any time and without notice to you.

19.
 
 
 
Cancellation:

9

You may close your Account by notifying us in writing, through the website, mobile application, or by

telephone.  You must notify anyone you have authorized to charge transactions to your Account that

you have closed your Account or we may continue to allow these transactions.  Your obligations on

the Account will continue even though you or we have closed your Account.  We may close your

Account or suspend your ability to use your Account or Card, or otherwise cancel, or limit this

Agreement at any time for any reason or no reason, and without notice to you, subject to applicable

law.  If you or we close your Account, you must destroy all Card plastics or other credit devices for

the Account.  We are not liable for any refusal by anyone to honor your Account or Card.

20.
 
 
 
Liability for Account:

Except as otherwise noted herein, you are liable for all amounts due under this Agreement regardless

of who receives beneût from the Account to the fullest extent permitted by law. 

21.
 
 
 
Other Users of your Account:

If you permit another person to use your Account by providing such person with a Card or the

Account number, your permission will be deemed to extend to all transactions made by that person

and will continue until you notify us at 844-KLARNA1 (844-552-7621) or otherwise take the

necessary steps to prevent such person from making further transactions using the Account.  Giving

another person a device that functions as a Card and/or any information necessary to use the device

as a Card has the same consequence for you as permitting such person to use your Account.  You

will be obligated to pay all transactions made by any person you permit to use your Account, as well

as all related fees, whether or not you intended to be responsible for such charges. 

22.
 
 
 
Liability for Unauthorized Use:

If you notice the loss or theft of your Card or a possible unauthorized use of your Account or Card,

you agree to write to us immediately at: WebBank c/o Klarna, P.O. Box 8116, Columbus, Ohio

43201. You will not be liable for any unauthorized use that occurs after we receive your notice.

Under our no fraud liability policy, you will not be liable for any unauthorized purchases made

through the Visa® network at merchants, including those transacted on the internet if you contact us

promptly after the Statement on which the transaction occurred was mailed or electronically sent to

you. You understand that we may need your assistance to help to ûnd out what happened and

correct the problem, and you agree to respond to any reasonable request for information related to

10

an unauthorized purchase. You understand that you are solely responsible for protecting access to,

and use of, your Card and Account Information, including if your mobile phone or other electronic

device can function as a Card or otherwise store your Account Information. You agree that

unauthorized use does not include use by a person to whom you have given authority to use the

Card or Account, and that you will be liable for all use by such a person until you notify us that such

authority to use the Card or Account is no longer authorized. To terminate that authority, you must

notify us at 844-KLARNA1 (844-552-7621).

23.
 
 
 
Credit Reports and Account Information:

You give us permission to request information and to make whatever inquiries we consider

necessary and appropriate, including obtaining information from third parties and requesting

consumer reports from consumer reporting agencies, for the purpose of considering your application

for this Account and subsequently, in connection with your Account, including any product upgrades

or any updates, renewals, reviews of your Spending Limit, or reviewing or collecting your Account. 

You also authorize us and/or Klarna to obtain reports on you, including consumer reports from

consumer reporting agencies, and to use such reports to market to you other products and/or

services. 

If
you
believe
that
you
have
been
the
victim
of
identity
theft
and
want
to
exercise
your
rights

under
the
Fair
Credit
Reporting
Act,
submit
an
identity
theft
report
and
aﬃdavit
to
WebBank

c/o
Klarna,
P.O.
Box
8116,
Columbus,
Ohio
43201.

24.
 
 
 
Change of Contact Information:

You agree to notify us promptly if you change your name, address, telephone number or any other

contact information.  You also agree that if the U.S. Postal Service or one of its agents notiûes us of

a change in address for you, we may change your address based on this information.  We will have

no liability to you for changing your address based on such information, even if the information

provided by the U.S. Postal Service or one of its agents is in error.  If any Statement is returned to us

because of an incorrect address, we may stop sending Statements to you until a valid address is

provided to us, but for all purposes it shall be considered as if we made your Statement available to

you as of the Statement date that was or would have been printed on your Statement.

25.
 
 
 
Telephone Communication Monitoring and Contacting 
You:

11

You agree that your telephone communications with us or any of our representatives, aﬃliates or

service providers may be monitored, recorded and retained by any of them.  You expressly consent

and authorize us, our representatives, aﬃliates, agents and service providers (including Klarna) to

contact you at any telephone number you provide to us, in the application or otherwise, now or in

the future, or any number you have previously provided to us, or any of our representatives, aﬃliates

or service providers, using an auto dialer, pre-recorded messages, artiûcial voice, or text messages,

in order to perform account authentication and to provide alerts and other information regarding your

current or future applications and accounts for all products you have or may have with us.  Message

and data rates may apply.  You also expressly consent to WebBank, or any of its representatives,

aﬃliates or service providers (including Klarna) sending email messages regarding your Account to

your email address, including emails delivered to a cell phone or mobile device.  You agree that you

will accept calls at your home, place of business or on a mobile telephone regarding the Account.

You understand that calls may be automatically dialed and a message played; you understand and

agree that these calls and messages may be read or listened to by anyone with access to your

telephone or email account, and that such calls are not "unsolicited calls" for purposes of any state

or federal law, and you expressly consent to receive such calls and messages.  You agree that we

are not liable for any resulting breach of privacy or for any charges or costs you incur in connection

with text messaging, emails or other communication that we or any of our representatives, aﬃliates

or service providers may send you.  You agree that this authorization constitutes a bargained for

exchange. To the extent you have the right under applicable law to revoke this authorization, you

agree you may do so only by writing to us at WebBank c/o Klarna, P.O. Box 8116, Columbus, Ohio

43201 or customerservice@klarna.com.

26.
 
 
 
Communications Under Federal Bankruptcy Code:

Any communication with us required or permitted under the Federal Bankruptcy Code must be in

writing, must include your Account number, and must be sent to WebBank c/o Klarna, P.O. Box

8116, Columbus, Ohio 43201.

27.
 
 
 
GOVERNING LAW; CLASS ACTION WAIVER:

THE TERMS AND ENFORCEMENT OF THIS AGREEMENT AND YOUR ACCOUNT SHALL BE

GOVERNED AND INTERPRETED IN ACCORDANCE WITH FEDERAL LAW AND, TO THE EXTENT

STATE LAW APPLIES, THE LAW OF THE STATE OF UTAH, WITHOUT REGARD TO CONFLICT-OF-

LAW PRINCIPLES. THE LAW OF THE STATE OF UTAH, WHERE WE AND YOUR ACCOUNT ARE

LOCATED AND FROM WHICH WE EXTEND CREDIT TO YOU, WILL APPLY NO MATTER WHERE

YOU LIVE OR USE THE ACCOUNT.  UNLESS
YOU
ARE
A
COVERED
BORROWER
UNDER
THE

12

MILITARY
LENDING
ACT
AT
THE
TIME
THIS
ACCOUNT
IS
ORIGINATED,
YOU
EXPRESSLY

WAIVE
YOUR
RIGHT
TO
INITIATE
OR
PARTICIPATE
IN
A
CLASS
ACTION
RELATED
TO
THIS

AGREEMENT
PURSUANT
TO
UTAH
CODE
ANN.
§
70C-3-104. 

28.
 
 
 
Waiver of Jury Trial:

You
acknowledge
that
the
right
to
trial
by
jury
is
a
constitutional
right
but
may
be
waived
in

certain
circumstances. 
To
the
extent
permitted
by
law,
you
knowingly
and
voluntarily
waive

any
right
to
trial
by
jury
in
the
event
of
litigation
arising
out
of
or
related
to
this
Agreement. 

This
jury
trial
waiver
shall
not
aﬀect
or
be
interpreted
as
modifying
in
any
fashion
the

Arbitration
Provision
below,
which
has
its
own
separate
jury
trial
waiver. 
This
waiver
does
not

apply
if
you
are
a
Covered
Borrower
under
the
Military
Lending
Act
at
the
time
this
Account
is

originated.

29.
 
 
 
Enforceability:

Subject to and except as otherwise provided in the Arbitration Provision, if any term of this

Agreement is ûnally determined to be void or unenforceable by a court or government agency of

competent jurisdiction, that term will be enforceable to the extent allowed by such court of agency,

and the remainder will no longer be a part of this Agreement.  All other provisions of this Agreement

will remain in eﬀect.

30.
 
 
 
Agreement in Writing:

This Agreement is the ûnal expression of the agreement between you and us and it may not be

contradicted by evidence of an alleged oral agreement. 

31.
 
 
 
Unsecured Credit:

Notwithstanding any language in any agreement to the contrary, this Account and this Agreement,

and your obligation to pay amounts due under this Agreement, are not secured, and any security

interest which might otherwise exist with respect to the Account or Agreement is hereby waived by

us.

13

32.
 
 
 
ARBITRATION PROVISION:

This ARBITRATION PROVISION does not apply if you are a Covered Borrower under the Military

Lending Act at the time this Account is opened.

To the extent permitted under federal law, you and we agree that either party may elect to arbitrate –

and require the other party to arbitrate – any Claim under the following terms.

A.         RIGHT
TO
REJECT: You may reject this Arbitration Provision by mailing a personally signed

rejection notice to WebBank c/o Klarna, P.O. Box 8116, Columbus, Ohio 43201, certiûed mail, return

receipt requested, within 60 days after your receipt of the Card after your Account is opened.  Any

Rejection Notice must include your name, address, telephone number and Account number.  No

other person may submit a rejection notice for you.  If you send a rejection notice we will give you a

credit for the standard cost of a letter sent by certiûed mail. Rejecting this Arbitration Provision will

not aﬀect any other provision of this Agreement.

B.         IMPORTANT
WAIVERS:
If
you
or
we
elect
to
arbitrate
a
Claim,
YOU
AND
WE
BOTH

WAIVE
THE
RIGHT
TO:
(1)
HAVE
A
COURT
OR
JURY
DECIDE
THE
CLAIM;
(2)
PARTICIPATE
IN

A
CLASS
ACTION
IN
COURT
OR
IN
ARBITRATION,
WHETHER
AS
A
CLASS
REPRESENTATIVE,

CLASS
MEMBER
OR
OTHERWISE;
(3)
ACT
AS
A
PRIVATE
ATTORNEY
GENERAL
IN
COURT
OR

IN
ARBITRATION;
OR
(4)
JOIN
OR
CONSOLIDATE
CLAIM(S)
WITH
CLAIMS
INVOLVING
ANY

OTHER
PERSON
IN
COURT
OR
IN
ARBITRATION.
Other
rights
are
more
limited
in
arbitration

than
in
court
or
are
not
available
in
arbitration. 
The
waivers
in
items
(2)-(4)
above
are
called

the
"Class
Action
and
Multi-Party
Waivers." 
The
arbitrator
shall
have
no
authority
to
conduct

any
arbitration
inconsistent
with
the
Class
Action
and
Multi-Party
Waivers
or
to
issue
any
relief

that
applies
to
any
person
or
entity
except
you
or
us
individually.

C.         DEFINITIONS:  In this Arbitration Provision, the following deûnitions will apply:

"You," "your" and "yours" mean all persons whom we approve to accept or use the Account, and

any person who agrees to be responsible for payment of the Account, and the heirs, executors and

assigns of all of the foregoing. "We," "us," "our" and "ours" mean WebBank; Klarna; and any

servicer or any agent acting on behalf of WebBank or Klarna; all of their parents, wholly or majority

owned subsidiaries and other aﬃliates; any predecessors, successors, and assigns of these entities;

and all oﬃcers, directors, employees, agents, controlling persons and representatives thereof. 

These terms also include any party named as a co-defendant with us in a Claim (as deûned below)

asserted by you, such as a credit reporting agency, a merchant accepting a charge card, a servicing

company or a debt collector.  "Claimant" means the party who asserts or seeks to assert a Claim in

a lawsuit or arbitration proceeding.  "Administrator" means the American Arbitration Association

(the "AAA"), 120 Broadway, Floor 21, New York, NY 10271, www.adr.org, or JAMS, 620 Eighth

14

Avenue, 34th Floor, New York, NY 10018, www.jamsadr.com, provided that, if the Claimant seeks to

assert a Claim in a class or multi-party basis, the Administrator must not have in place a formal or

informal policy that is inconsistent with and purports to override the Class Action and Multi-Party

Waivers set forth above (see the above Section B.).  The Claimant will select the Administrator by

ûling a Claim with the Administrator of that party's choice.  (If a Claimant ûles a lawsuit in court

asserting Claim(s) that are subject to arbitration and the other party ûles a motion to compel

arbitration, which is granted, it will be up to the Claimant to commence the arbitration proceeding.)  If

for any reason the selected Administrator is unable or unwilling to serve or continue to serve as

Administrator, the other company will serve as Administrator.  If neither the AAA nor JAMS is able or

willing to serve as Administrator, you and we will mutually agree upon an Administrator or arbitrator,

or the court will appoint the Administrator or arbitrator or arbitrators (in the case of a three-arbitrator

panel provided for in Section H., below), subject to the limitations set forth above regarding the Class

Action and Multi-Party Waivers.

D.         A "Claim" means any legal claim, dispute or controversy between you and us that arises

from or relates in any way to this Agreement, including, but not limited to, any dispute arising before

the date of this Arbitration Provision and any dispute relating to: (1) any Card; (2) your Account; (3)

any transaction in connection with your Account; (4) fees, charges or interest; (5) the events leading

up to the Agreement (for example, any disclosure, advertisement, application, solicitation, promotion

or oral or written statement, warranty or representation made by us); (6) an application for or denial

of credit; (7) credit reporting; (8) beneût programs related to your Account; (9) any product or service

provided by or through us or third parties in connection with the Agreement and any associated fees;

(10) the collection of amounts due and the manner of collection; (11) our use or failure to protect any

personal information you give us in connection with this Agreement; (12) enforcement of any and all

of the obligations a party hereto may have to another party; (13) compliance with applicable laws

and/or regulations; or (14) the relationships resulting from the Agreement or any of the foregoing. 

"Claim" has the broadest possible meaning.  It includes initial claims, counterclaims, cross-claims,

third-party claims and federal, state, local and administrative claims and claims which arose before

the eﬀective date of this Arbitration Provision.  It also includes disputes based upon contract, tort,

consumer rights, fraud and other intentional torts, constitution, statute, regulation, ordinance,

common law and equity and claims for money damages and injunctive or declaratory relief. 

However, "Claim" does not include any individual action brought by you in small claims court or your

state's equivalent court, unless such action is transferred, removed, or appealed to a diﬀerent court. 

Also,
"Claim"
does
not
include
disputes
about
the
validity,
enforceability,
coverage
or
scope
of

this
Arbitration
Provision
or
any
part
thereof
(including,
without
limitation,
this
sentence,
the

Class
Action
and
Multi-Party
Waivers
or,
subparts
(A)
and
(B)
of
Section
K.
below,
captioned

"SEVERABILITY");
all
such
disputes
are
for
a
court
and
not
an
arbitrator
to
decide.

Notwithstanding
the
foregoing,
the
term
"Claim"
includes
any
dispute
about
the
validity
or

enforceability
of
this
Agreement,
as
a
whole;
any
such
Claim
is
for
the
arbitrator,
not
a
court,

to
decide.

15

E.         ELECTING
OR
REQUIRING
ARBITRATION:
The Claimant may elect arbitration of a Claim

by initiating an arbitration in accordance with the Administrator's rules.  The other party may elect

arbitration by giving written notice of an election to arbitrate.  This notice may be given after a

lawsuit has been ûled and may be given in papers or motions in the lawsuit.  If such a notice is given,

the Claim shall be resolved by arbitration under this Arbitration Provision and the applicable rules of

the Administrator then in eﬀect.  It will be up to the Claimant to commence the arbitration

proceeding.  Even if all parties have opted to litigate a Claim in court, you or we may elect arbitration

with respect to any Claim made by a new party or any Claim later asserted by a party in that or any

related or unrelated lawsuit (including a Claim initially asserted on an individual basis but modiûed to

be asserted on a class, representative or multi-party basis).  Nothing in that litigation shall constitute

a waiver of any rights under this Arbitration Provision.  The arbitrator will be selected under the

Administrator's rules, except that the arbitrator must be a lawyer with at least ten years of

experience or a retired judge, unless you and we agree otherwise.

F.         LOCATION
AND
COSTS:
Any arbitration hearing that you attend will take place in a location

that is reasonably near your residence or in another location agreed to by you and us.  We will

consider (and generally honor) any good faith request to bear the fees charged by the Administrator

and the arbitrator.  We will pay the reasonable and actual expense of our attorneys, experts and

witnesses, regardless of which party prevails in the arbitration, and we will pay all such reasonable

and actual fees of yours if you prevail in an arbitration where you are the Claimant (even if we are not

required to pay such fees under applicable law). We will also pay all such fees we are required to

bear: (a) under applicable law; or (b) in order to enforce this Arbitration Provision.

G.        DISCOVERY;
GETTING
INFORMATION:
Either party may obtain from the other party prior to

the hearing any information available under the Administrator's rules or any relevant information the

arbitrator determines should in fairness be made available.

H.         EFFECT
OF
ARBITRATION
AWARD:
Any state or federal court with jurisdiction and venue

may enter an order enforcing this Arbitration Provision, enter judgment upon the arbitrator's award

and/or take any action authorized under the Federal Arbitration Act, 9 U.S.C. §§1 et
seq. (the

"FAA").  For any arbitration-related proceedings in which courts are authorized to take actions under

the FAA, each party hereto expressly consents to the non-exclusive jurisdiction and venue of any

state court of general jurisdiction or any state court of equity that is reasonably convenient to you,

provided that the parties to any such judicial proceeding shall have the right to initiate such

proceeding in federal court or remove the proceeding to federal court if authorized to do so by

applicable federal law.  The arbitrator's award will be ûnal and binding, except for: (1) any appeal

right under the FAA; and (2) Claims involving more than $50,000.  For Claims involving more than

$50,000 (including claims where the cost of any requested injunctive or declaratory relief would

potentially exceed $50,000), if permitted by the rules of the Administrator, any party may appeal the

award to a three-arbitrator panel appointed by the Administrator, which will reconsider de
novo any

aspect of the initial award that is appealed.  The panel's decision will be ûnal and binding, except for

16

any appeal right under the FAA.  Costs of any appeal will be governed by Section F. above.  No

arbitration award involving the parties will have any preclusive eﬀect as to issues or claims in any

dispute involving anyone who is not a party to the arbitration, nor will an arbitration award in prior

disputes involving other parties have preclusive eﬀect in an arbitration between the parties to this

Agreement.

I.           GOVERNING
LAW:
This Arbitration Provision is made pursuant to a transaction involving

interstate commerce and shall be governed by the FAA, and not by any state law concerning

arbitration.  The arbitrator shall follow applicable substantive law to the extent consistent with the

FAA, applicable statutes of limitation and applicable privilege rules, and shall be authorized to award

all remedies permitted by applicable substantive law, including, without limitation, compensatory,

statutory and punitive damages (subject to constitutional limits that would apply in court),

declaratory, injunctive and other equitable relief, and attorneys' fees and costs.  Upon the timely

request of either party, the arbitrator shall write a brief explanation of the basis of his or her award. 

The arbitrator will follow rules of procedure and evidence consistent with the FAA, this Arbitration

Provision and the Administrator's rules.

J.          SURVIVAL;
PRIMACY:
This Arbitration Provision shall survive your full payment of amounts

due on your Account under the Agreement; termination or cancellation of the Agreement; our sale,

assignment or transfer of the Agreement, the Account or any Account receivables; any legal

proceeding to collect a debt owed by you; any bankruptcy or insolvency; and any postponement of

payments, waiver of payments or modiûcation granted pursuant to the Agreement.  In the event of

any conüict or inconsistency between this Arbitration Provision and the Administrator's rules or the

Agreement, this Arbitration Provision will govern.

K.         SEVERABILITY: If any portion of this Arbitration Provision cannot be enforced, the rest of the

Arbitration Provision will continue to apply, except that (A) the entire Arbitration Provision (other than

this sentence) shall be null and void with respect to any Claim asserted on a class, representative or

multi-party basis if the Class Action and Multi-Party Waivers are held to be invalid, subject to any

right to appeal such holding, and (B) if a Claim is brought seeking public injunctive relief and a court

determines that the restrictions in the Class Action and Multi-Party Waivers prohibiting the arbitrator

from awarding relief on behalf of third parties are unenforceable with respect to such Claim (and that

determination becomes ûnal after all appeals have been exhausted), the Claim for public injunctive

relief will be determined in court and any individual Claims seeking monetary relief will be arbitrated. 

In such a case the parties will request that the court stay the Claim for public injunctive relief until the

arbitration award pertaining to individual relief has been entered in court.  In no event will a Claim for

public injunctive relief be arbitrated.

L.         NOTICE
OF
CLAIM;
RIGHT
TO
RESOLVE;
SPECIAL
PAYMENT:
Prior to initiating, joining or

participating in any judicial or arbitration proceeding, whether individually, as a class representative

or participant or otherwise, regarding any Claim, the Claimant shall give the other party written notice

of the Claim (a "Claim
Notice") and a reasonable opportunity, not less than 30 days, to resolve the

17

Claim.  Any Claim Notice you send must include your name, address, telephone number and

Account number.  Any Claim Notice must explain the nature of the Claim and the relief that is

demanded.  You may only submit a Claim Notice on your own behalf and not on behalf of any other

party.  The Claimant must reasonably cooperate in providing any information about the Claim that

the other party reasonably requests.  If: (i) you submit a Claim Notice in accordance with this

paragraph on your own behalf (and not on behalf of any other party); (ii) we refuse to provide the

relief you request before an arbitrator is appointed; and (iii) an arbitrator subsequently determines

that you were entitled to such relief (or greater relief), the arbitrator shall award you at least $7,500

plus any arbitration fees and attorneys' fees and costs to which you may be entitled under this

Arbitration Provision or applicable law.

33.
 
 
 
BILLING RIGHTS SUMMARY

YOUR
BILLING
RIGHTS:
KEEP
THIS
DOCUMENT
FOR
FUTURE
USE

This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act.

WHAT
TO
DO
IF
YOU
FIND
A
MISTAKE
ON
YOUR
STATEMENT

If you think there is an error on your statement, write to us at: WebBank c/o Klarna, P.O. Box 8116,

Columbus, Ohio 43201. In your letter, give us the following information:

●  Account
information: Your name and Account number.

●  Dollar
amount: The dollar amount of the suspected error.

●  Description
of
problem: If you think there is an error on your bill, describe what you believe is

wrong and why you believe it is a mistake.

You must contact us:

●  Within 60 days after the error appeared on your statement.

●  At least 3 business days before an automated payment is scheduled, if you want to stop payment

on the amount you think is wrong. 

This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act.

You must notify us of any potential errors in
writing. You may call us, but if you do we are not

required to investigate any potential errors and you may have to pay the amount in question.

WHAT
WILL
HAPPEN
AFTER
WE
RECEIVE
YOUR
LETTER

18

When we receive your letter, we must do two things:

1.          Within 30 days of receiving your letter, we must tell you that we received your letter.  We will

also tell you if we have already corrected the error.

2.          Within 90 days of receiving your letter, we must either correct the error or explain to you why

we believe the bill is correct.

While we investigate whether or not there has been an error:

●  We cannot try to collect the amount in question, or report you as delinquent on that amount.

●  The charge in question may remain on your statement, and we may continue to charge you

interest on that amount.

●  While you do not have to pay the amount in question, you are responsible for the remainder of

your balance.

●  We can apply any unpaid amount against your Spending Limit.

After we ûnish our investigation, one of two things will happen:

●  If
we
made
a
mistake: You will not have to pay the amount in question or any interest or other

fees related to that amount.

●  If
we
do
not
believe
there
was
a
mistake: You will have to pay the amount in question along

with applicable interest and fees.  We will send you a statement of the amount you owe and the date

payment is due.  We may then report you as delinquent if you do not pay the amount we think you

owe.

If you receive our explanation but still believe your bill is wrong, you must write to us within 10
days

telling us that you still refuse to pay.  If you do so, we cannot report you as delinquent without also

reporting that you are questioning your bill.  We must tell you the name of anyone to whom we

reported you as delinquent, and we must let those organizations know when the matter has been

settled between us.

If we do not follow all of the rules above, you do not have to pay the ûrst $50 of the amount you

question even if your bill is correct.

YOUR
RIGHTS
IF
YOU
ARE
DISSATISFIED
WITH
YOUR
CHARGE
CARD
PURCHASES:

If you are dissatisûed with the goods or services that you have purchased with your credit card, and

you have tried in good faith to correct the problem with the merchant, you may have the right not to

pay the remaining amount due on the purchase.

To use this right, all of the following must be true:

19

1.          The purchase must have been made in your home state or within 100 miles of your current

mailing address, and the purchase price must have been more than $50. (Note: Neither of these is

necessary if your purchase was based on an advertisement we mailed to you, or if we own the

company that sold you the goods or services.)

2.          You must have used your charge card for the purchase. Purchases made with cash

advances from an ATM or with a check that accesses your charge card Account do not qualify.

3.          You must not yet have fully paid for the purchase. 

If all of the criteria above are met and you are still dissatisûed with the purchase, contact us in

writing at:

WebBank c/o Klarna

P.O. Box 8116

Columbus, Ohio 43201

While we investigate, the same rules apply to the disputed amount as discussed above.  After we

ûnish our investigation, we will tell you our decision.  At that point, if we think you owe an amount

and you do not pay, we may report you as delinquent.

34.
 
 
 
Additional Disclosures

IDAHO,
IOWA,
KANSAS,
MAINE
AND
SOUTH
CAROLINA
RESIDENTS
ONLY: We may declare

you to be in default if the prospect of your payment or performance is signiûcantly impaired (for Iowa

residents, if, following an event of default, the prospect of your payment is materially impaired).  We

have the burden of establishing the impairment of such prospect of payment or performance.

IOWA,
MISSOURI,
NEBRASKA,
AND
TEXAS
RESIDENTS
ONLY: ORAL AGREEMENTS OR

COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR FORBEAR FROM ENFORCING

REPAYMENT OF DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT

ENFORCEABLE.  TO PROTECT YOU AND US FROM ANY MISUNDERSTANDING OR

DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED

IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT

BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

CALIFORNIA
AND
UTAH
RESIDENTS:
As required by California and Utah law, you are hereby

notiûed that a negative credit report reüecting on your credit record may be submitted to a credit

reporting agency if you fail to fulûll the terms of your credit obligations.

20

NEW
YORK,
RHODE
ISLAND
AND
VERMONT
RESIDENTS:
You understand and agree that we

may obtain a consumer credit report in connection with any updates, renewals or extensions of any

credit as a result of your application and card membership.  If you ask, you will be informed whether

or not such a report was obtained and, if so, the name and address of the agency that furnished the

report. You also understand and agree that we may obtain a consumer credit report in connection

with the review or collection of any extension of credit made to you or for other legitimate purposes

related to such extension of credit.

WISCONSIN
RESIDENTS
ONLY: We may declare you to be in default (a) if you fail to pay the ûrst

payment or last payment within 40 days of its scheduled due date or deferred due date or (b) if you

fail to observe any other provision of this Agreement, the breach of which materially impairs your

ability to pay the amounts due under the Agreement. 

MARRIED
WISCONSIN
RESIDENTS:
If you are married: (i) you conûrm that this Account is being

incurred in the interest of your marriage or family; (ii) no provision of any marital property agreement,

unilateral statement, or court decree under the Wisconsin Marital Property Act will adversely aﬀect a

creditor's interest unless, before the time credit is granted, the creditor is furnished a copy of that

agreement or decree or is given complete information about the agreement or decree; (iii) you

understand and agree that we will provide a copy of this Agreement to your spouse for his or her

information.  If the Account for which you are applying is granted, you will notify
us if you have a

spouse by sending your name and your spouse's name and address to us at WebBank c/o Klarna,

P.O. Box 8116, Columbus, Ohio 43201.

21