Klarna bank have terminated my account and demanding the full balance

toro99

Hi guys. Wondered if I could get some advice please.

I opened a Klarna account last September, to pay for some veterinary treatment for my dog. The account was set up through the vet (a specialist known on TV) and the total came to around £670.

When setting up the account, I was under the impression that a direct debit had been set up. I had given my bank details after all. It now appears that there hadn't (and I should have selected 'auto-pay' in their app) so there has been no payments made since opening the account.

Fast forward three months, in December I received a default notice. I put this aside and told myself I would deal with it later - which I didn't, I stupidly forgot about it.

Last month I received another letter from Klarna bank (making it 2 in total) titled "Confirmation of termination of your account". It stated that debt collection agencies would be involved etc. I immediately phoned them and the lady told me that as long as I make payments, a collections company wouldnt be involved. I told her that my student finance arrived on the 18/05/20 and I would make a partial-payment then.

Today I phoned up Klarna bank again, to check where things were. I was told that the debt had now been passed onto collections and that I would be contacted somewhere in the future - no timescale and no contact details for said company. Klarna also weren't willing to set up any kind of plan from this point.

I intend to engage with the collections company from day one, and set up a plan. However, there will surely be fee's added to this total. I checked my Klarna account online and noticed that there were 6 defaults on my account, and then proceeded to check my email. Throughout all of this, from September until today, Klarna have only contacted me three times, one missed payment email in November (which I didnt see, opened today), a default letter in december and an account closure letter in March. Should Klarna have contacted me each time a default occured on the account?

Thanks for reading - hope you're all well.

Caz3121

Is it 6 defaults or 6 missed payments?

JGB1955

You expect them to wait until May for a first payment?.....

toro99

JGB1955 said:

You expect them to wait until May for a first payment?.....

6 default notices apparently

toro99

JGB1955 said:

You expect them to wait until May for a first payment?.....

Ofcourse not - but in my post in mentioned how I was under the impression that a direct debit had been set up. There has been minimal contact from Klarna so I wasn't aware. I was told I needed to click 'automatic payments' on their app to turn direct debits on... something I have never experienced with any creditor.

Caz3121

how much was the direct debit amount?...in hindsight the first thing to do would have been to bring the account up to date with the money that was still sitting in your account as the dd had not been taken and ensure it was set up correctly for future payments, than to miss even more payments

toro99

Caz3121 said:

how much was the direct debit amount?...in hindsight the first thing to do would have been to bring the account up to date with the money that was still sitting in your account as the dd had not been taken and ensure it was set up correctly for future payments, than to miss even more payments

It was going to be around £75 - but my money managment is not great and I had not even given thought as to whether the money was going out, or sitting in my account. I don't check my bank regularly at all and as far as i was concerned it was business as usual

JGB1955

toro99 said:

It was going to be around £75 - but my money managment is not great and I had not even given thought as to whether the money was going out, or sitting in my account. I don't check my bank regularly at all and as far as i was concerned it was business as usual

... which is where it's all gone Pete Tong.

DCFC79

toro99 said:

Caz3121 said:

how much was the direct debit amount?...in hindsight the first thing to do would have been to bring the account up to date with the money that was still sitting in your account as the dd had not been taken and ensure it was set up correctly for future payments, than to miss even more payments

It was going to be around £75 - but my money managment is not great and I had not even given thought as to whether the money was going out, or sitting in my account. I don't check my bank regularly at all and as far as i was concerned it was business as usual

Why sign up with Klarna ?

tonyhender

It's your own fault you ignored the letter. Even if they sent you 6 letters you would ignored then too.

tonyhender

You knew because you recieved the letter from them and basically never questioned it