Klarna Faces €500 Million Dutch Claim Over Deferred-Payment Loan Practices

According to Stichting Massaschade & Consument (SMC), Klarna formally faced liability on July 12 over allegations of issuing credit without required affordability checks and allowing minors to access its services. The Dutch consumer foundation is seeking repayment exceeding €500 million from Klarna B.V. and parent company Klarna AB, claiming the buy-now-pay-later provider failed to comply with consumer credit regulations. SMC has invited Klarna to discuss a potential settlement, with talks expected in August or September, while the foundation prepares for potential legal proceedings.
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