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

nyermen

Yes, the "ability" to remove money from accounts is done by setting up those direct debits - presumably because Klarna have passed on details of peoples bank accounts? (I presume they are DD's, not CPA's)

The system has the DD guarantee as a back stop, but it does beg the question - at what point should a company have their right to create DD's revoked for abuse.

djg80

Hi, Ive googled this morning and been brought to this conversation. After reading it all I am another who has been affected by this.
I had an account with Klarna which was fully paid off the 18th January of this year.
I received the emails from them confirming the account was now paid off and closed.
However, six months later, today, I have just had Creditlink try to take that same amount Klarna used to through means of a direct debit I never set up with them!
I have never received any letters or emails about Creditlink and who they are or why they would have any of my details.
I have told Lloyds to cancel the direct debit, and they have refunded me the amount taken already.
I rang Klarna to ask what was going on and the customer service agent wasn't very helpful but I feel was very cagey and knew EXACTLY what was happening. She advised me almost immediately to email Klarna customer services so I have now sent a very strongly worded email to them asking what the hell they are playing at selling off not only private data but my BANKING data allowing another company to set up a direct debit without my authority!
I will wait for their response but I want to take this further definitely.

nyermen

I worry they're a bit of a black hole, but if needed and at a suitable time (eg. insufficient response), mention to FOS if it appears Credit Link are abusing the DD process. https://www.financial-ombudsman.org.uk/businesses/complaints-deal/banking-and-payments/direct-debits

I wonder if the ICO is also interested that Klarna appear to have passed on peoples account/sort code information to a third party (who of course then proceeded to setup direct debits and claim money that wasn't owed)

Notahappyman

Hello all,

Similar to the above posts, this morning I discovered that I am also a victim of Klarna passing on my details to JCIA/CARS to recover a debt that does not exist. I searched for similar circumstances on Google and it has brought me here.

I paid my final installment to Klarna in January 2024 and received an email from them stating that the loan agreement was now completed and closed. No contact since then, aside from a fairly recent email from Creditlink Account Recovery Solutions asking me to rate their service. Which as it was in reference to Klarna, I perhaps wrongly assumed it was just another email asking me to rate them.

Now I find out that money has been taken from my account through a direct debit I did not set up or agree to.

I have emailed Klara customer service and they replied quickly stating that they are aware of an issue with out of date account information being sent to JCIA and that the issue it being looked into with any overpayments to be credited back. No time scale was given though on when the money will refunded.

ancientferguson

djg80 said:

Hi, Ive googled this morning and been brought to this conversation. After reading it all I am another who has been affected by this.
I had an account with Klarna which was fully paid off the 18th January of this year.
I received the emails from them confirming the account was now paid off and closed.
However, six months later, today, I have just had Creditlink try to take that same amount Klarna used to through means of a direct debit I never set up with them!
I have never received any letters or emails about Creditlink and who they are or why they would have any of my details.
I have told Lloyds to cancel the direct debit, and they have refunded me the amount taken already.
I rang Klarna to ask what was going on and the customer service agent wasn't very helpful but I feel was very cagey and knew EXACTLY what was happening. She advised me almost immediately to email Klarna customer services so I have now sent a very strongly worded email to them asking what the hell they are playing at selling off not only private data but my BANKING data allowing another company to set up a direct debit without my authority!
I will wait for their response but I want to take this further definitely.

Hi there,

Klarna have sold hundreds of debts that were not owed. They are doing their best to keep a lid on it and it seems to be working. Nobody from the media is picking up on this, it's a scandal. 

When it all started, Klarna staff were working flat out on complaints and it took way over an hour to get an answer.
They have a BS response but if you push them, they admit they have a problem. 

They sent you down the email route to stop them having to carry on the uncomfortable conversation.


Klarna are a disgrace and shouldn't be entrusted with the data of anybody. They haven't answered my initial complaint ticket, but I am letting them hang themselves on that one.

Creditlink/CARS are cowboys and they are setting up Direct Debits based on information supplied to them by Klarna, knowing full well that the Klarna data is corrupt. The CARS guy I spoke to one morning admitted I was the seventh "victim" he had spoken to that morning. 

You could make a complaint at CARS, but you will just get an email back eventually from a name "Arjun" who is apparently just an administrator that pretends to investigate. Eventually, you will get a final response letter from him/her to say they have done nothing wrong and that you are to contact the Ombudsman.

I then pushed back to him/her to say that they created and obtained funds from me via DD, knowing at the time of applying for the funds, that I didn't owe anything. I had already proved the same with his colleagues. I suggested that CARS' ability to create DD should be removed from them, because of their persistence in essentially stealing from bank accounts. This individual didn't know very much considering he apparently "investigated" the complaint.

Anyway, following my push back, he decided the final response letter was to another complaint and that the setting up the DD complaint was still being investigated. I again pushed back and told him that I had only made one complaint and that he was making it up as he goes along. 

So, in a nutshell, the three companies involved in this farce have many layers of administrative nonsense designed to frustrate and confuse. They are hoping the hundreds of people affected by this, just get fed up and fade away.

Make sure you record all phone calls to any of these companies and always question their systems and the "what if" scenarios. They really are a disgrace. If you want some fun, have a look at JCIA and CARS on company house and look at the complication that is their ownership. 

ancientferguson

Notahappyman said:

Hello all,

Similar to the above posts, this morning I discovered that I am also a victim of Klarna passing on my details to JCIA/CARS to recover a debt that does not exist. I searched for similar circumstances on Google and it has brought me here.

I paid my final installment to Klarna in January 2024 and received an email from them stating that the loan agreement was now completed and closed. No contact since then, aside from a fairly recent email from Creditlink Account Recovery Solutions asking me to rate their service. Which as it was in reference to Klarna, I perhaps wrongly assumed it was just another email asking me to rate them.

Now I find out that money has been taken from my account through a direct debit I did not set up or agree to.

I have emailed Klara customer service and they replied quickly stating that they are aware of an issue with out of date account information being sent to JCIA and that the issue it being looked into with any overpayments to be credited back. No time scale was given though on when the money will refunded.

Contact your bank and tell them that the CARS direct debit was improperly set up and that any funds need to be refunded. It will be done very rapidly.  Also, make sure the Creditlink Direct Debit is cancelled on your account.

I suggest you return an email to Klarna customer services, telling them that you wish to escalate this disgrace to a complaint. Otherwise you will be ignored going forward.

ancientferguson

nyermen said:

I worry they're a bit of a black hole, but if needed and at a suitable time (eg. insufficient response), mention to FOS if it appears Credit Link are abusing the DD process. https://www.financial-ombudsman.org.uk/businesses/complaints-deal/banking-and-payments/direct-debits

I wonder if the ICO is also interested that Klarna appear to have passed on peoples account/sort code information to a third party (who of course then proceeded to setup direct debits and claim money that wasn't owed)

Thanks Peter, I will definitely be doing this, I am just waiting for the result of CARS' fake investigation to be completed into the same.

I 

T3dd5worth

I am currently in the same situation. I originally believed to have fully paid off my loan agreement as I noticed there was no payment taken this month from my 36 month loan agreement with Klarna Bank AB for a product purchased in 2021.

All was fine until this morning when I recieved an email this morning from JCIA, informing me that I was in debt and owed money. After some investigation and calls to BPO collections who are the collections agent in this matter.

It appears that Klarna had marked the direct debit to be cut off in May 2024. Two months before the actual end date. This was confirmed by my bank.

This now leaves me with two final payments that are not going to be taken and have now been sent to a debt collection agency. I am trying to figure out why Klarna would set up a direct debit to cancel 2 months prior to the end date.

BPO have also launched a query to why this has happened as they can see all payments made to Klarna. I just wondered if anyone has any advice if possible, as this all seems a tad strange. To further the strangeness, BPO informed me that it has not been recorded on my credit file. I am just a little suspect with the whole situation.

nyermen

T3dd5worth - most of those here are sure its paid off - so you may be in a slightly different situation - albeit with the same resulting issues from DC's.

That said - direct debits are pull not push - that is, a mandate is set up by the company and then the company "requests" a payment from your bank (normally via their own bank which goes via the direct debit system).  So - in this case, I suspect they've failed to request the last 2 payments - that would be on them, assuming you didnt cancel the mandate on your side (in fact, check your bank, and screenshot it for proof).

T3dd5worth

nyermen said:

T3dd5worth - most of those here are sure its paid off - so you may be in a slightly different situation - albeit with the same resulting issues from DC's.

That said - direct debits are pull not push - that is, a mandate is set up by the company and then the company "requests" a payment from your bank (normally via their own bank which goes via the direct debit system).  So - in this case, I suspect they've failed to request the last 2 payments - that would be on them, assuming you didnt cancel the mandate on your side (in fact, check your bank, and screenshot it for proof).

Oh no I understand the situation with the direct debits. I spoke with my banks branch manager which was able to find the now cancelled direct debits and stated that when first set up the direct debit they had the end date of May 2024, it had then automatically canceled itself inline with the dates specified by Klarna.

Which doesn't align with the financings end date of July 2024. Its just a weird situation overall.  the bank are providing me with paperwork to show this and then a list of all 34 payments made ccorrectly. I am happy to pay the remainder of the financing agreement but I find the whole situation, a little suspect.