Not upheld: Credit file / adverse marker disputes complaint against Klarna Financial Services UK Limited
Financial Ombudsman decision DRN-6131467 of 2026-06-16T00:00:00+00:00. Credit file / adverse marker disputes complaint against Klarna Financial Services UK Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6131467 |
|---|---|
| Decision date | 2026-06-16T00:00:00+00:00 |
| Firm | Klarna Financial Services UK Limited |
| Product | Personal loan |
| Claim type | Credit file / adverse marker disputes |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman did not instruct Klarna to remove the default from Mr A's credit file or take any other action. |
Summary
Mr A complained that Klarna unfairly defaulted his loan agreement after he cancelled his direct debit during a dispute with the merchant over damage to a returned device. Mr A believed he did not need to make payments while the dispute was ongoing. However, the ombudsman found that Mr A remained liable for payments until the merchant confirmed the device had been returned, and Klarna's January 2024 letter clearly stated payments would resume if the return wasn't registered within 30 days. Despite receiving multiple notices about missed payments and arrears, Mr A did not resume payments. The default was registered after three months of arrears, in line with ICO guidance, and the ombudsman did not uphold the complaint.
The Ombudsman's reasoning
The ombudsman found that Mr A remained liable for payments until the merchant confirmed the device had been returned. Klarna's January 2024 letter clearly stated that payments would resume if the return wasn't registered within 30 days. Mr A was aware of the ongoing dispute with the merchant and ought to have known the return hadn't been accepted. Despite receiving multiple notices about missed payments and arrears, Mr A did not resume payments. The default was registered after three months of arrears, in line with ICO guidance. Klarna had a duty to report accurately to Credit Reference Agencies and did not make an error in recording the default.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Klarna Financial Services UK Limited, all decisions | 8 | 0% |
| Credit file / adverse marker disputes, all decisions | 9,663 | 27% |
| Personal loan, all decisions | 23,643 | 29% |
Source
Read the original decision on the Financial Ombudsman Service website