09 Mar Klarna admits customer-unfriendly business practices
In a statement published the day before yesterday, the Swedish payment provider Klarna, which is viewed critically by customers, merchants, financial regulators and consumer advocates because of its business model, admitted that it had been charging “unnecessary fees” in the German market for years, among other things. Specifically, the self-incrimination refers to revolving, ie in fact always unlimited, expensive loans and to the “Pay in month X” function, which has so far allowed customers to delay the repayment of loans for a fee. Both products are now to be abolished. In addition, the Swedes want to extend the payment period from 14 to 30 days when purchasing on account and send more free payment reminders. The announced overdue changes will be communicated in a memo as the new financial industry standard.