Customers don't have to pay Klarna? Court ruling waives collection fees - complete guide

It sounds almost too good to be true: customers don't 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 thus effectively provided consumer credit without complying with legal regulations.

Why customers don't have to pay Klarna, according to the court

The core of the case lies in how Klarna makes money from buy now, pay later. As long as a payment service remains free, there's no issue. But once charges are imposed—such as collection fees—the European court considers that a paid credit. And then strict rules apply: a mandatory creditworthiness assessment, clear information about costs, and the warning 'borrowing money costs money'.

Klarna did not meet these requirements. The court determined that the company could not prove that its collection fees were merely cost-covering and not part of its profit 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.

These costs you can reclaim (and these 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 may no longer charge these as long as the company does not comply with credit rules. Already paid them? 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. Those have also become legally shaky.
• The original amount - This remains due. The ruling only applies to penalties and extra fees.

An important note: 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 about excessive fees? Or are you yourself facing a payment default? This is your customers don't have to pay Klarna guide for practical use:

Step 1 is to check whether your situation falls under the ruling. It applies to cases where Klarna charged collection fees or interest for buy now, pay later transactions. Step 2: refuse to pay these charges. You can inform Klarna that you are referring to the ruling of the District Court of Central Netherlands. Step 3: already paid? Then file a formal complaint with Klarna to get the amount back. Debt counsellors advise assessing per case whether disputing is worthwhile—for high fees or a 100% write-off, it's quickly worth the effort.

Meanwhile, Klarna is trying to defend itself. The company claims it does not profit from collection fees and that these costs actually lose the company money. The numbers speak for themselves: Klarna says that for every €100 in late payment fees, it spends about €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 obtained a licence for collection activities in the Netherlands. That sounds like the company is now playing by the rules. Yet the story is not over. The core question—whether buy now, 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, for example, warns about the new Klarna payment card, which also allows you to pay later in physical stores. They find this undesirable because it lowers the threshold to debt even further.

One thing is clear: the days when Klarna could charge high collection fees without consequence are over. This ruling gives consumers a powerful tool. And who wants to know how to use customers don't have to pay Klarna in practice? The answer is simple: refuse the extra charges, refer to the ruling, and pay only what you owe for the purchase itself.

Do keep in mind that Klarna can report payment defaults to credit bureaus. For now, this does not affect your credit score, but it's something to watch. My advice: pay on time if you can, but don't be intimidated by unfair charges.