Klarna · Klarna Privacy Policy

Automated Credit Decision-Making

High severity
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What it is

Klarna uses algorithms to automatically decide whether to approve you for buy-now-pay-later or other credit products, without a human reviewing your application. You do have the right to ask for a human to review any such decision.

Consumer impact (what this means for users)

Automated creditworthiness decisions can directly prevent you from using Klarna's services, and while you have a stated right to human review, the process and timeline for exercising that right are not clearly specified in the policy.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
  • Dispute a Fee
    Email privacy@klarna.com to request human review of an automated credit or access decision, specifying the transaction or application date and the outcome you are contesting.

Cross-platform context

See how other platforms handle Automated Credit Decision-Making and similar clauses.

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Why it matters (compliance & risk perspective)

An automated system — not a person — may deny you access to Klarna's payment services, and the lack of transparency about the decision logic makes it difficult to understand or challenge rejections.

View original clause language
We use automated decision-making, including profiling, to assess your creditworthiness and to prevent fraud. This means we use technology to make decisions about you without human involvement. These decisions can affect whether we offer you our services and on what terms. You have the right to obtain human intervention, express your point of view, and contest the decision.

Institutional analysis (Compliance & legal intelligence)

REGULATORY FRAMEWORK: GDPR Art. 22 prohibits solely automated decisions producing significant legal or similarly significant effects without explicit consent, necessity for a contract, or EU/member state law authorization; data subjects must be informed of logic, significance, and envisaged consequences per Art. 13(2)(f) and 14(2)(g). UK GDPR Art. 22 and DPA 2018 Sch. 1 impose equivalent obligations. ECOA 15 U.S.C. §1691 and Regulation B require adverse action notices for US credit decisions. FCRA 15 U.S.C. §1681 may apply if consumer reporting agency data is used. Enforcement authorities: Swedish IMY, UK ICO, US CFPB, FTC.

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Applicable agencies

  • CFPB
    CFPB has jurisdiction over automated credit decision-making under ECOA/Regulation B and FCRA adverse action notice requirements.
    File a complaint →
  • FTC
    FTC has authority over unfair or deceptive practices in automated decision-making and algorithmic credit under FTC Act Section 5.
    File a complaint →

Provision details

Document information
Document
Klarna Privacy Policy
Entity
Klarna
Document last updated
April 29, 2026
Tracking information
First tracked
April 27, 2026
Last verified
April 27, 2026
Record ID
CA-P-003477
Document ID
CA-D-00166
Evidence Provenance
Source URL
Wayback Machine
SHA-256
bfbac757c06748a3aa551a759cd3abf415605416813542dd2a529a21bc5bd714
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: Klarna | Document: Klarna Privacy Policy | Record: CA-P-003477
Captured: 2026-04-27 13:38:29 UTC | SHA-256: bfbac757c06748a3…
URL: https://conductatlas.com/platform/klarna/klarna-privacy-policy/automated-credit-decision-making/
Accessed: May 2, 2026
Classification
Severity
High
Categories

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