Dutch consumer group SMC has announced plans to launch a class action lawsuit against Klarna over alleged breaches of Dutch consumer credit rules.
Stichting Massaschade & Consument (SMC), a Netherlands-based non-profit organisation, said on 13 July 2026 that it is preparing legal action against Sweden-based digital bank Klarna over its buy now, pay later (BNPL) services. SMC argues that the products, which allow consumers to pay for purchases at a later date, typically within 14 or 30 days, function as a form of credit and should therefore be subject to the legal safeguards that apply to consumer credit agreements.
Alleged regulatory breaches
According to SMC, Klarna has not carried out adequate creditworthiness assessments and has failed to properly inform consumers about the risks and costs associated with its credit products. The group also alleges that Klarna handled disputed claims, returns, and fraud cases carelessly, and did not verify whether consumers were financially able to take on the credit before agreements were concluded.
In addition, SMC contends that these shortcomings could render the underlying credit agreements voidable, and it intends to seek reimbursement of costs it says consumers paid unjustly, including purchase amounts, reminder fees, collection costs, and fines. The organisation estimates that Klarna could be liable to repay more than EUR 500 million should the claim succeed.
In response, a Klarna representative said the company disagrees with the allegations and is reviewing its legal options, adding that no formal claim has yet been filed against it.
Age verification concerns
SMC has also alleged that Klarna extended credit to individuals under 18 without valid parental or guardian consent, as required under Dutch law, and that the company's age-verification checks were easy to circumvent. The group cited a 2023 finding from the Dutch Authority for the Financial Markets (AFM), which traced close to 600.000 iDEAL payments made from minors' accounts to BNPL providers.
A 2026 report from the National Institute for Family Finance Information (NIBUD) found that 13% of Dutch school students under 18 use BNPL services, attributing this partly to weak age checks and partly to limited awareness among minors of minimum age requirements.
The proposed class action would cover Dutch consumers charged additional costs by Klarna for late payment or collection, as well as consumers who used its pay-later service while under 18 without valid consent; parents and guardians of affected minors would also be eligible to join.
Regulatory context
SMC, represented by Finch Dispute Resolution, has said it would prefer to resolve the matter through consultation and has invited Klarna to enter discussions. A lawyer representing SMC noted that the case touches on wider concerns about credit being extended without proper checks, including to minors, and expressed hope that it would support stricter enforcement of existing rules.
The case comes as regulatory oversight of the BNPL sector tightens across Europe. From November 2026, the Netherlands will implement the Consumer Credit Directive II (CCDII), bringing BNPL providers under the Financial Supervision Act (Wft) and requiring them to obtain an AFM licence and conduct creditworthiness assessments before granting credit. The Dutch government has also said it will go beyond EU requirements by banning BNPL services for under-18s and introducing stricter age-verification obligations.
In the UK, the Financial Conduct Authority (FCA) began regulating deferred payment credit from 15 July, requiring BNPL providers to obtain authorisation for relevant consumer credit activities.
