Klarna and Xbox shoppers urged to check credit scores after direct debits were set up to sold-out subscription
THOUSANDS of Klarna and Xbox shoppers are being urged to check their credit scores after direct debits were set up to a sold-out subscription.
The new Xbox Series X is being sold as a subscription model for £25 a month with access to more than 100 games.
Although it won't be available until November, shoppers could start pre-ordering it this week through Game and Smyths Toys which both use buy- now, pay-later service Klarna.
Due to high demand, some shoppers have found their orders were unsuccessful, yet Klarna has still set up direct debits for their payments.
The service has also conducted hard credit checks, which could affect your ability to get credit products, such as a loan or mortgage, in the future.
Angry shoppers have vented about the problems in recent days, with one user saying: @Klarna bought an Xbox yesterday through all access signed credit agreement. Set up direct debit. Hard credit search done.
You also have a legal right to access your report from each CRA for free - but this won't include your score.
Alternatively, you check your credit score for free using the following third parties:
- ClearScore: ClearScore uses Equifax's data to .
- MoneySavingExpert.com: This tool uses Experian's data to
Salman Haqqi, personal finance expert at comparison site , told The Sun: "It is important to check your credit score, as the Klarna application will be visible to other lenders on your file.
If you're in the process of getting a mortgage, several hard checks on your credit file can affect your chances of getting one, he added.
Having the checks removed from your file can also take time, so in the meantime, contact the credit referencing agencies and ask them to make a note on your file.
If you're not getting anywhere with Klarna, you can complain to the Financial Ombudsman, Mr James said.
Klarna said in a statement on its website: "We recognise this has been a frustrating experience for many of our consumers.
"Please rest assured that we are working hard with our retailers and we are extremely sorry for any inconvenience or distress this may have caused."
The Sun contacted Smyths Toys and Game for comment.
A few months ago, a charity warned that Klarna's new loyalty scheme "encourages overspending".
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Buy-now, pay-later firms have been criticised for the long term affects of short-term payment plans if shoppers can't afford to pay it back.
If you're unable to pay then it may be passed onto a debt collector.