Klarna selling a debt that was never a bad debt and was closed months previously.

JadedAngel88

carl_swlondon said:

I’m another unwelcome member to the club!

I won’t repeat my experience over the last 24 hours as it mirrors the original poster.  Needless to say, Klarna are saying I need to sort with JCIA & they are saying they have bought our ‘debt’ in good faith.  

My starting point on Monday will be to see if my bank can recover the payment they have taken and to stop the next one they are planning to.

If they have set up a direct debit on your account that you didn't agree to, the bank will refund you. There is no 'can'. They have to as part of the direct debit guarantee. 

retiredbanker1

All of you on here who have had so called debts by Klarna should say to the debt collectors ''I dispute this debt please send back to originator''.
They have to do this - in many cases it will be less hassle for you (get confirmation) then you have to deal with Klarna.

ancientferguson

retiredbanker1 said:

All of you on here who have had so called debts by Klarna should say to the debt collectors ''I dispute this debt please send back to originator''.
They have to do this - in many cases it will be less hassle for you (get confirmation) then you have to deal with Klarna.

This is what I have gleaned so far.

Klarna often "batch sell" good, well maintained loans off to JCIA. On this occasion, it seems Klarna have sold a load of loans that were within the last payment or two of completion, around the 31st of January this year.

Neither Klarna nor JCIA notified the customers that the debt had been sold on. Despite selling the loans off, Klarna carried on collecting the payments and the loans closed as planned. For me and no doubt hundreds of others, it took JCIA three months to notify us of the change of ownership of the debt and begin a hurried collection of the same.

What doesn't make sense is why Klarna would sell my debt on, that at the time of purchase on the 31/1/24, had one payment remaining, although they came after me for two payments. Like CARS, the collection agency have said, it just doesn't make sense to sell one payment on, because it would cost more than that to collect, as it is sold at a cheaper price than what is owed.

The only reason I can think that Klarna sells debt on like this, is liquidity, good old cashflow. Money they can resell and make more commissions on, from retailers with their 0% loans or indeed, interest bearing loans.

The dodgy part of all of this is that Klarna has kept on collecting payments, after selling off the debt.

JCIA, that doth protest innocence, is acting like a victim. A victim I might add that is now refusing to answer their phones and is not responding to answer phone messages. 

It may well be that in my case, Klarna has collected the debt for JCIA and that three months down the line, JCIA has mistakenly tried to collect it again, either through incompetence or as part of a revenue boost. Let's face it, I nearly ignored the email from CARS as a scam and I could easily have missed the payment, from my account, had my awareness to watch my account not been heightened. I asked CARS what happens to the cash they extract from peoples account and they say that it is sent to JCIA. I am certain that in high enough volumes, some payments are not noticed and reside in the account of JCIA. JCIA's silence is concerning and in my opinion I would like to see a full investigation into the operation of this company. 

Or perhaps, JCIA always waits three months to collect on the debts it has purchased and never checks with Klarna and others like them, to see if the account has been settled.

I have had a bank account for 40 years, mortgages, loans, credit cards, business accounts and I have never heard of shoddy dealings like this. I have never missed a single payment in my life and yet I still managed to get a collection company removing money from my account.

They have awoken a sleeping giant in me. I have an obsession to find out exactly what occurred here and for sure, I will.

Thanks for the advice.

ancientferguson

carl_swlondon said:

I’m another unwelcome member to the club!

I won’t repeat my experience over the last 24 hours as it mirrors the original poster.  Needless to say, Klarna are saying I need to sort with JCIA & they are saying they have bought our ‘debt’ in good faith.  

My starting point on Monday will be to see if my bank can recover the payment they have taken and to stop the next one they are planning to.

I am sorry to hear this, although there are hundreds of us, so you are in good company. Do not let Klarna palm you off. Their operators have been briefed on this and will tell you it's quite normal. Make sure you register a complaint with them. They will do nothing with it, but they will feature front and centre of my complaint to the Ombudsman. I have contacted the investigations team of a very well known member of the Press, but I am not sure whether they will see a story in this.

Can you confirm that your account with Klarna was closed, fully settled, at the point that JCIA came after you for more money?


Oh and your bank will have your money returned to your account the same day normally. I bank with Lloyds and their policy is that any complaint made by 4pm will be returned by 8pm. Lloyds were fantastic.

Go to the transaction you are disputing, click on it and see if you can contact the bank from within the app. Don't wait until Monday.

carl_swlondon

ancientferguson said:

carl_swlondon said:

I’m another unwelcome member to the club!

I won’t repeat my experience over the last 24 hours as it mirrors the original poster.  Needless to say, Klarna are saying I need to sort with JCIA & they are saying they have bought our ‘debt’ in good faith.  

My starting point on Monday will be to see if my bank can recover the payment they have taken and to stop the next one they are planning to.

I am sorry to hear this, although there are hundreds of us, so you are in good company. Do not let Klarna palm you off. Their operators have been briefed on this and will tell you it's quite normal. Make sure you register a complaint with them. They will do nothing with it, but they will feature front and centre of my complaint to the Ombudsman. I have contacted the investigations team of a very well known member of the Press, but I am not sure whether they will see a story in this.

Can you confirm that your account with Klarna was closed, fully settled, at the point that JCIA came after you for more money?


Oh and your bank will have your money returned to your account the same day normally. I bank with Lloyds and their policy is that any complaint made by 4pm will be returned by 8pm. Lloyds were fantastic.

Go to the transaction you are disputing, click on it and see if you can contact the bank from within the app. Don't wait until Monday.

Thank you the the guidance & motivation.  

To confirm, my scenario I believe is identical to yours.  The last payment was the end of March, I received a statement on 09th April confirming the account was fully settled & just like others, all payments had been made in full & on time by DD.  First I knew of the issue was finding a payment out of the account 2 days ago.  Klarna told me they couldn’t do anything & that u had to contact JCIA, they told me they’ve bought the debt in good faith.  Since then, I’ve hounded Klarna & have an email from them saying:

‘Important to note and for clarification, this has not happened due to bad debt, missed or late payments, and is affecting all Klarna Loans customers with no exceptions.’

No offer to sort it though!  I’m all up for an official complaint.

ancientferguson

carl_swlondon said:

ancientferguson said:

carl_swlondon said:

I’m another unwelcome member to the club!

I won’t repeat my experience over the last 24 hours as it mirrors the original poster.  Needless to say, Klarna are saying I need to sort with JCIA & they are saying they have bought our ‘debt’ in good faith.  

My starting point on Monday will be to see if my bank can recover the payment they have taken and to stop the next one they are planning to.

I am sorry to hear this, although there are hundreds of us, so you are in good company. Do not let Klarna palm you off. Their operators have been briefed on this and will tell you it's quite normal. Make sure you register a complaint with them. They will do nothing with it, but they will feature front and centre of my complaint to the Ombudsman. I have contacted the investigations team of a very well known member of the Press, but I am not sure whether they will see a story in this.

Can you confirm that your account with Klarna was closed, fully settled, at the point that JCIA came after you for more money?


Oh and your bank will have your money returned to your account the same day normally. I bank with Lloyds and their policy is that any complaint made by 4pm will be returned by 8pm. Lloyds were fantastic.

Go to the transaction you are disputing, click on it and see if you can contact the bank from within the app. Don't wait until Monday.

Thank you the the guidance & motivation.  

To confirm, my scenario I believe is identical to yours.  The last payment was the end of March, I received a statement on 09th April confirming the account was fully settled & just like others, all payments had been made in full & on time by DD.  First I knew of the issue was finding a payment out of the account 2 days ago.  Klarna told me they couldn’t do anything & that u had to contact JCIA, they told me they’ve bought the debt in good faith.  Since then, I’ve hounded Klarna & have an email from them saying:

‘Important to note and for clarification, this has not happened due to bad debt, missed or late payments, and is affecting all Klarna Loans customers with no exceptions.’

No offer to sort it though!  I’m all up for an official complaint.

"and is affecting all Klarna Loans customers with no exceptions."


And customers with closed loans. 


What a shambles. Klarna sending you off to JCIA, who are not answering their phones or picking up their answerphone messages, disgusts me. 

Klarna is a disgrace and should not be considered by anyone.

retiredbanker1

I would have thought that the mods and leaders of this site would have picked up on this scandal by now and got it out there in the media!

ancientferguson

retiredbanker1 said:

I would have thought that the mods and leaders of this site would have picked up on this scandal by now and got it out there in the media!

Perhaps when they see the potential size of this for themselves and not just take my (our) word for it, they might.

It's difficult to tell without knowing the exact details, but a very close relation to me that, let's say, works in the compliance side of the financial world, has uttered several breaches of regulatory law and guidance, not to mention good/best practice. If this has been done in the large scale that I suspect, Klarna need to be handing themselves in...so to speak. Right now, they are batting things away and by all accounts, their attitude stinks.

Ergates

Probably not because this is a very clear and obvious mistake.  Klarna - through some failure of business process - have sent an incorrect extract of customer records to a debt recovery service (who have paid for the data).

It's an almighty !!!!!! up, but it's a very obvious one too.

JCIA will be not answering phones because, acting on the information they *bought* from Klarna, they have sent out hundreds of letters/emails and/or accounts to recovery services, for invalid claims, and they will be utterly inundated with calls from irate people right now.

This is obviously very frustrating for the victims and a utter disgrace from Klarna - but it is also obviously a huge mess that is going to take some time to clear up.  

ancientferguson

Ergates said:

Probably not because this is a very clear and obvious mistake.  Klarna - through some failure of business process - have sent an incorrect extract of customer records to a debt recovery service (who have paid for the data).

It's an almighty !!!!!! up, but it's a very obvious one too.

JCIA will be not answering phones because, acting on the information they *bought* from Klarna, they have sent out hundreds of letters/emails and/or accounts to recovery services, for invalid claims, and they will be utterly inundated with calls from irate people right now.

This is obviously very frustrating for the victims and a utter disgrace from Klarna - but it is also obviously a huge mess that is going to take some time to clear up.  

This is a fair summary and mistakes happen.

It's how mistakes are dealt with, that makes all the difference. My experience so far is that three very amateur companies appear to be able to remove money from the account of somebody that does not owe it, despite proof of the error being furnished.

Something, somewhere is very wrong with the system.