Klarna under attack after Xbox subscription glitch
The new Xbox Series X is being sold on a subscription model for £25 a month with access to more than 100 games. The deal means that gamers don’t have to pay a huge amount of money up front.
The video console was available for pre-order yesterday through two retailers, Game and Smyths Toys, even though it won’t be available until November.
The two retailers are using Klarna to sell the subscriptions but buyers are finding that their orders aren’t being confirmed although they are being credit checked by Klarna and a direct debit set up for payments.
Gamers took to Twitter to complain that they received confirmation of their direct debit instruction to Klarna, but their order for the games console was not confirmed, or they were told the product was out of stock. Some users were worried about the impact on their credit score.
Klarna was responding to Tweets about the issue with a message asking customers to send their details via direct message.
Xbox UK Tweeted: “For new Xbox All Access customers who have proof of their application acceptance, but have not yet received email confirmation from either Game or Smyths, we are working to resolve. Please get in touch with the relevant retailers’ customer service team.”
A blog post on Klarna’s website said that the company had processed thousands of successful applications but high demand meant that some consumers experienced issues with their orders.
These involved a number of consumers being approved for financing but were unable to complete their orders on the retailers’ website.
Klarna says this happened because, in response to the high demand, the retailers ran out of stock and had to close online orders whilst consumers were part way through the checkout, or had just completed their credit applications.
The blog post said: “We would like to reassure consumers who have received notification that they have set up a direct debit but were unable to place their order that we are working with our retailers to ensure a satisfactory outcome for these consumers.”
Klarna also admitted that some consumers had expressed concerns about the impact on their credit scores when they made multiple applications due to website issues.
The blog post said: “When a customer applies for our financing products, Klarna performs a hard credit check which can impact your credit score and is visible to other lenders.
“The further searches you can see after the initial credit check are known as quotation or soft searches and are not visible to any other lenders, just to yourself, and do not affect your credit score. If you are, however, concerned or believe you have seen more than one hard credit check, please let us know and we are happy to investigate. If an error has occurred, we will work alongside the credit reference agency to ensure a hard credit check made by Klarna only appears once.”