Klarna will begin charging UK customers late payment fees
IN BRIEF:
- Klarna will begin charging a £5 fee to customers that miss payments from the 16th March
- Fees will be capped at 25 per cent of the order value with no more than two fees per order
- Customers will have the option of automatic payments and a seven day grace period before fees are charged
What does this mean?
James Daley, managing director at Fairer Finance, comments: “We are pleased that Klarna has introduced late fees, as we have previously recommended to them. Used responsibly, late fees provide an important deterrent as well as a reminder that Buy Now Pay Later is a form of credit and needs to be taken seriously as a loan. It’s of course important that late fees are fair and reasonable, and don’t become an income stream for credit providers, and it’s encouraging to see that Klarna intends to provide additional support for those who fall behind.”
