Klarna intrest?

Mostlyunserious

Hello, this is my first time posting here.I'm just wondering if anyone had advice or opinions on the situation that I'm currently facing.

I took out a contract with klana to purchase a Samsung phone, this was a four-year fixed term, interest free agreement, where I should be coming up to my final payment soon.
I logged into my klarna account to look at the status of my payments, to see an added amount of interest of around 400 pounds the payment duration dragged out till 2028.

I contacted customer services who stated that this was due a change of agreement, that was explained in an email (I did not see this as went to junk) and that due to me not responding to that email, I had agreed to the a new terms.

The phone originally only cost around 770 pounds, they want to add on another 400 pounds of interest to the agreement and drag the payments out another three years which makes no sense.  

The representative I spoke to was adamant that nothing else could be changed, that it's already been generated, and that it was what it was.

I have then further dug into my emails, finding an email from klana stating that the contract had indeed change terms but no interest would be added to my agreement, I'm just wondering which is the best way to to deal with this situation. 

The customer service felt like a brick wall, no empathy, very patronising and most definitely didn't want to help.

I don't want to be going in circles regarding this and getting nowhere, I feel like it can't be legal this practice, and just want the situation sorting. 

Thanks for reading 

G

retiredbanker1

From what I can gather from the Samsung site - you can get 0% on loans up to 24 months.
Anything beyond 24 months suggest a minimum of 9.9% APR

Unless you can show a copy of your loan agreement I don't think you can go anywhere with this.

Alderbank

The OP took on this loan agreement about four years ago. During the intervening four years there have been a lot of changes in the world of buy now pay later.

In February 2022 the UK's Financial Conduct Authority forced Klarna, along with the other three major buy now pay later companies Laybuy, Clearpay and Openpay, to make changes to their T&Cs.

I think it will be these changes that the OP is referring to.

Mostlyunserious

@Alderbank
This is what I'm assuming is the case regarding the T&Cs.. I just really don't know where to go regarding the situation. I would have just paid of the remaining balance in April when the changes happened, had I have realised. 
I'm finding it hard to comprehend that I'm being locked into another 4 years of a contract (ending 2028) and pay £1200 for a £700 phone purchased in 2020?! 

I'm at the point where do I just pay the additional 400 interest that has been added and wash my hands or to try and pursue a resolution. 
Kr

saajan_12

Minimally, please quote the original agreement you had and the email that the CS agent is referring to.