topic Re: Does defaulting on klarna/affirm affect your credit? in Rebuilding Your Credit

Does defaulting on klarna/affirm affect your credit?

Snoopy916 — Thu, 09 Jun 2022 21:19:18 GMT

A few months ago I tried to use klarna for the first time. I was denied because they said i had an unpaid loan open. This was a total shock because i had NEVER used them before.
I contacted them to correct this. They said i took out a $250 loan about a year prior and never made a payment on it. I was livid. I have zero derogatories since my bk 4+ years back and got my score up to 743, and was proud of that.

3 months later, i tried to do another klarna loan to see if they fixed it, and yet again they said i have an unpaid loan. I have now gone back and forth 13 times with klarna since i first discovered this fraudulent loan. Each time they say they will "research it" and get back to me. They have never even asked for any kind of ID, affidavit, statement, etc. Every single time they have just cut and pasted EXACT same response and have not done ANYTHING about it.

im just ready to wash my hands of them and just forget they exist, but am worried about my credit. There is zero about this on my credit, even though I supposedly am about 13 months late on this "loan."

so do they just never report, good or bad? Is it the same for the others (affirm, sezzle, etc)?

thank you

Re: Does defaulting on klarna/affirm affect your credit?

CYBERSAM — Thu, 09 Jun 2022 21:48:29 GMT

I know affirm reports to EX, therefore they can report negative. However they can easily send to collection and that would report on all credit bureaus!

Re: Does defaulting on klarna/affirm affect your credit?

TattnallTrio — Fri, 10 Jun 2022 00:54:32 GMT

I'd recommend you immediately file a police report reporting the identity theft. Save the case number from that. Also, add a temporary fraud alert to your credit files. This will stay on for one year.
If they report it, they you can write the credit bureaus in writing saying that this account was fraudulent, and include the police report # and a copy of the police report, if you can. They'll have no choice but to remove it since you've proven it was fraudulent. This may be a lot more work over $250 than necessary but this will cover your bases.

Re: Does defaulting on klarna/affirm affect your credit?

Snoopy916 — Fri, 10 Jun 2022 00:58:32 GMT

Not only have i reported it, they actually caught the guy and he is in jail right now. He actually bought 2 cars and a motorcylce in my name as well, and also about $80k worth of credit card fraud. All of that has been removed from my credit, and my balances zeroed out. But klarna STILL wont do anything about this stupid $250. I even sent them all the info from my case from the police, court dockets etc. it's pretty nuts

Re: Does defaulting on klarna/affirm affect your credit?

jrwa81 — Fri, 10 Jun 2022 01:42:50 GMT

I'm pretty sure that Klarna does not report to the credit bureaus as they are not even an American company. They are in Sweden. However, the CEO of Klarna is Sebastian Siemiatkowski. You might be able to find his email address on Google and try contacting him.