Klarna plans to tell credit agencies if repayments fail

Industry News | 10/12/20

The Buy Now, Pay Later company Klarna plans to report missed and failed payments to credit reference agencies.

Klarna gives customers different ways to pay for items online such as within 30 days or over three instalments. The company doesn’t currently report customers who miss payments.

“What we are looking at in terms of to protect consumers is to work with the credit reference agencies to enable reporting in the future,” Klarna’s Alex Marsh, told Radio 4’s Money Box.
Mr Marsh, Klarna’s UK lead, said while the company only accepts customers which it believes can pay on time, it freezes or closes down the accounts of those who end up missing too many payments or make none at all.

Source: BBC