Customers may not have to pay Klarna? Court ruling voids collection fees - complete guide

It sounds almost too good to be true: customers may not have to pay Klarna. Yet this is exactly what a recent court ruling means in practice for thousands of Dutch people who once faced collection fees from the Swedish payment service. The District Court of Central Netherlands ruled that Klarna was not transparent about its business model and, in effect, provided consumer credit without complying with legal requirements.

Why the court says customers may not have to pay Klarna

The crux of the case lies in how Klarna makes money from pay later services. As long as a payment service remains free, there is no problem. But once costs are charged – such as collection fees – the European court considers that a paid credit arrangement. And then strict rules apply: a mandatory creditworthiness assessment, clear information about costs, and the warning 'borrowing money costs money'.

Klarna failed to meet these requirements. The court determined that the company could not prove that its collection fees were only cost-covering and not part of its business model. Because consumer protection under the law applies to a consumer credit agreement, the court ruled that the customer did not have to pay the claimed interest and collection fees.

Which costs you can reclaim (and which you cannot)

Let's be clear: you still have to pay the original purchase amount. That is beyond question. But all the extra fees Klarna charged because you were late? In many cases you can ignore or reclaim those. Here's what you need to know:

• Collection fees – Klarna can no longer charge these as long as the company does not comply with credit regulations. Already paid them? Then you can ask for a refund.
• Interest – Interest on overdue payments also falls under the same ruling. Do not pay.
• Reminder fees – The first reminder is free, but after that Klarna often adds charges. These too have become legally shaky.
• The original amount – This remains due. The ruling only concerns penalties and extra costs.

An important caveat: the ruling officially applies only to the Central Netherlands region. Other courts may decide differently. Nevertheless, this ruling carries weight, and it is expected that other judges will take it into account.

How to use this ruling in your situation

Have you left a Klarna review complaining about excessive fees? Or are you facing an overdue payment yourself? This is your practical customers may not have to pay Klarna guide:

Step one is to check whether your situation falls under the ruling. It concerns cases where Klarna charged collection fees or interest on pay later transactions. Step two: refuse to pay these costs. You can tell Klarna that you are referring to the ruling by the District Court of Central Netherlands. Step three: if you have already paid, file a formal complaint with Klarna to get your money back. Debt advisers recommend assessing per case whether disputing the fees is worthwhile – for high costs or a 100% arrangement, it is quickly worth the effort.

Meanwhile, Klarna is trying to defend itself. The company claims it does not make money from collection fees and that these costs actually lose the company money. The figures are telling: Klarna says that for every €100 in late payment fees, it spends roughly €126 on collections and credit losses. But the court was not convinced, and the financial complaints institute also ruled that Klarna seriously violated the rules.

What does this mean for new purchases with Klarna?

Klarna has since arranged a licence for collection activities in the Netherlands. That sounds as if the company is now playing by the rules. Yet the story is not over. The central question – whether pay later should be seen as credit – remains unresolved.

From November 2026, stricter European rules for Buy Now, Pay Later services will come into effect. Then credit checks and age verification will become mandatory. Until then, we are in a grey area. A consumer watchdog has, for example, warned about the new Klarna payment card, which also lets you pay later in physical shops. They consider this undesirable because it lowers the threshold to debt even further.

One thing is clear: the days when Klarna could freely charge high collection fees are over. This ruling gives consumers a powerful tool. And for those wanting to know how to use customers may not have to pay Klarna in practice? The answer is simple: refuse the extra costs, refer to the ruling, and pay only what you owe for the purchase itself.

Bear in mind that Klarna can report late payments to credit bureaus. For now, this does not affect your credit record with the main agencies, but it is something to keep an eye on. My advice: pay on time if you can, but don't be put off by unjustified fees.