Not upheld: Goods and services under S75 complaint against Klarna Financial Services UK Limited

Decision detail

Summary

Mrs R purchased an electric scooter via a Buy Now Pay Later loan with Klarna in October 2024. In May 2025, she reported a battery fault and sought a refund or replacement battery costing £260. Klarna declined the claim based on insufficient expert evidence, noting the diagnostic report came from a general garage without specialist e-scooter knowledge, while the retailer had offered free expert inspection. The ombudsman upheld Klarna's decision to decline the refund claim but awarded £80 compensation for customer service delays. Mrs R has since stopped making repayments on the agreement.

The Ombudsman's reasoning

The ombudsman found that Klarna acted fairly in declining the claim because the diagnostic evidence provided by Mrs R came from a general garage without specialist knowledge or equipment for e-scooters. The retailer, being better positioned with specialist diagnostic equipment, had made reasonable offers of help which Mrs R declined. The ombudsman concluded that Klarna was entitled to question the reliability of the garage report and that Mrs R had not provided sufficiently persuasive evidence of liability. The £80 compensation was deemed fair for the customer service delays acknowledged by Klarna.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website