Klarna & Money Adviser Network to offer customers free debt advice

By Gloria Methri

Klarna has joined forces with the Money Adviser Network to enable its consumers in the UK to access free debt advice quickly. This move makes Klarna the first BNPL provider to partner with the Money Adviser Network, which is provided by MoneyHelper, a UK Government body.

Through the partnership, Klarna will signpost debt advice services from members of the Money Adviser Network to its customers. This will enable individuals who are concerned about their finances or would like independent and free credit advice to access 24/7 support.

The Money Adviser Network connects consumers directly to the debt advice services of StepChange, Citizens Advice, or the National Debtline. It automatically identifies the debt advice services with the most available advisers, ensuring consumers can access debt advice as quickly as possible.

Through the Money Adviser Network, Klarna customers will benefit from access to trusted advisers and recommendations for the service with the most agents available at any one time, so they can get help quickly.

Flora Coleman, Director of Global Policy, and Government Relations at Klarna, said, “We are proud to be the first BNPL service to join forces with MAN and give customers a simplified route to debt advice, and are calling on other BNPL providers to join us in providing the same access to advice and support, to ensure that customers’ interests are always put first.

Today’s news is the latest in a string of announcements highlighting how Klarna is supporting its customers to borrow responsibly. Recent initiatives include the launch of Klarna’s credit ‘opt out’ tool enabling customers to ‘pre-decide’ not to use credit, and its ongoing work with Fairer Finance to ensure its terms and conditions are clear and simple to understand.

Klarna is also trailing Open Banking data to improve its affordability assessments. It also continues to limit access to its credit products for consumers who fall behind on their payments, to prevent debt from accumulating.