"Interest-free payment methods are an important alternative to expensive credits for millions of Britons. Klarna has supported the introduction of new rules since 2020 and looks positively on the work now progressing. We look forward to cooperating with the FCA on rules that strengthen consumer protection and promote innovation", writes Klarna in a comment on the new rules emailed to TT.
According to the proposal – which is to be approved by the British parliament to come into force – it will, among other things, require Klarna and competitors like Clearpay, Paypal and Zilch have payment ability before loans are offered. Furthermore, it will become easier for consumers to cancel agreements and file complaints with the British consumer agency, reports news agency Bloomberg.
The purpose is, according to the British government, to protect customers from "debt traps".
The new rules proposed are, according to the British government's plan, to come into force at the turn of the year.
According to Klarna, eleven million Britons used Klarna to pay online last year. Klarna performs a credit assessment at each purchase, including an external credit check.
