Shoppers in the UK who use Klarna have been issued a worrying warning. Klarna is currently available to buy items from hundreds of websites, including H&M, ASOS, Halfords, Nike, Debenhams, Pretty Little Thing and Missguided.
Klarna has now warned that it will start to report the use of buy now pay later (BNPL) products to UK credit reference agencies from June. It will report consumer purchases paid on time, late payments and unpaid purchases for “pay in 30” and “pay in three” orders made on or after June 1 to Experian and TransUnion, the Liverpool Echo reports.
Klarna said the move will protect customers and provide the industry with greater visibility of BNPL use, helping to improve affordability assessments. Alex Marsh, head of Klarna UK, said: “It is alarming that UK consumers are still being forced to take out high cost credit cards to demonstrate they can use credit responsibly and build their credit profile. That will start to change on June 1 this year as the vast majority of the 16 million UK consumers who make Klarna BNPL payments in full and on time will be able to demonstrate their responsible use of credit to other lenders.”
