Pre-contractual document related to "Pay in 3 instalments"

1. Information on Klarna Bank AB (publ)

Denomination: Klarna Bank AB (publ) (“Klarna”)

Registered office:

Spanish Office: Eloy Gonzalo 27, 28010, Madrid, Spain

Headquarters: Sveavägen 46, SE-111 34 Stockholm, Sweden

Klarna Bank AB (publ) is incorporated under Swedish law and is registered with the Swedish Companies Registration Office.

Telephone No.: +34 911 39 12 31 (charges may apply depending on the conditions and service covered by your telephone service provider).

Other contact: https://www.klarna.com/es/atencion-al-cliente/

Website: www.klarna.com/es/

Klarna Bank AB (publ) is authorised to provide financial services by Finansinspektionen (the Swedish Financial Supervisory Authority) and is registered with the Bank of Spain to provide services in Spain under the number 673.

2. Characteristics of the product and typical risks

“Pay in 3 instalments” is a credit that allows you to pay in three interest-free instalments by choosing Klarna as your payment method. The first payment is charged when the merchant confirms your order (usually the shipping date) or upon order placement, and the next 2 payments are automatically charged after 30 and 60 days after the initial payment. The “Transaction Amount” is the value of your purchase. There are no interest charges with Pay later in 3 instalments, and no fees when you follow your automatic payment schedule. If you are delayed in making a payment, we may charge late fees. Any missed instalments, including any added late fees, will be rolled over to the next scheduled due date.

Payment is made by valid debit or credit card issued to you (no prepaid cards).

“Pay in 3 instalments” is a credit. A credit is a binding commitment and shall be reimbursed. If you miss a repayment this could have severe consequences for you, and Klarna can, amongst other actions: (a) charge the outstanding balance, including late fees, on your Pay later in 3 instalments purchase immediately, using any card we have on file for you or by a separate invoice; (b) employ a debt collection agency to receive payment and you will have to pay all reasonable costs (including attorney’s fees) incurred by Klarna and/or the debt collection agency; and (c) report default information to credit reporting agencies. Late payments, missed payments, or other defaults on your purchase may be forwarded to the credit reference agency and be reflected in your credit report which could impact your credit score.

3. Financial conditions

Main costs
Credit amount	The credit amount will be in Euro and will correspond to the Transaction Amount plus shipping costs, taxes, currency conversion if applicable, as well as any other fees or costs charged by the merchant. An initial payment is made when the merchant confirms your order (usually the shipping date) or upon order placement, and the next 2 payments are automatically charged after 30 and 60 days after the initial payment.
Interests	Interest-free
Late fees	Yes. If you fail to make a payment by the end of the courtesy slack period you will be in default, and in addition to other rights we have, we may charge you a late fee amounting to the following; i) four (4) EUR per instalment if the total order value is below 49.90 EUR, ii) seven (7) EUR per instalment if the total order value is between 50- 199.99 EUR, iii) twelve (12) EUR per instalment if the total order value equals 200 EUR or above, or the maximum amount permitted by applicable law if lower.
Early repayment	You can pay any remaining payments at any time and we will not charge you for doing so. If you cancel your purchase we will cancel any remaining payments and pay back to your card any amounts we have taken.
Annual percentage rate of charge (APR)	0%

4. Main contractual clauses regulating the product

The main clauses of the Pay later in 3 instalments Terms, include but are not limited to the following:

You must be 18 years old, a Spanish resident, and capable of entering into a legally binding contract.
If you cancel your purchase or return your goods we will automatically waive the amount you owe us (as soon as this has been confirmed by the merchant). If you already paid us for a refunded order, we will refund the amount you paid back to you.
You give us the authority to take the two remaining payments from your card on the due dates without any further notice to you.
You authorize us to store your card details on our systems. We will use this information to authorize future payments under these Terms.
If we are unable to charge your selected payment method for the amount due on your due date we will send you a notification and provide you a courtesy two to seven business day slack period so that you can update your payment method or ensure enough funds are available on your selected card. If you update your card, we may attempt to collect the late payment immediately. Otherwise we will attempt to charge your original card again after the two to seven-day period.
You can pay any remaining payments at any time and we will not charge you for doing so. If you cancel your purchase we will cancel any remaining payments and pay back to your card any amounts we have taken. Any part returns or refunds credited to your purchase will reduce your outstanding balance, but do not count as payments.
Klarna processes your personal data in order to carry out our obligations in this agreement and for the additional purposes set out in our Privacy Notice.The Privacy Notice is available here, and on our website.
To the extent required by applicable law, our contractual relationship with you derived from this payment option shall be governed by Spanish law. Any disputes arising from or in connection with this payment option shall be subject to the courts of your domicile.

5. Complaints

For complaints regarding the Klarna Services, the information provided on https://www.klarna.com/es/atencion-al-cliente/ applies. If you have a complaint towards Klarna, you can submit your complaint through the contact form on Klarna’s website (https://www.klarna.com/es/atencion-al-cliente/), via email to service@klarna.com.es or via postal mail with the keyword "Complaint” to Klarna’s address. We will try to solve your complaint as soon as possible, and no later than 2 months from its submission. If Klarna is unable to resolve a complaint, You may refer Your complaint to the Swedish National Board for Consumer Disputes (ARN) at Allmänna reklamationsnämnden, Post box 174, 101 23 Stockholm, Sweden. Klarna will participate in such proceedings and is obliged to do so under applicable law. Information on access requirements can be found on ARN’s website: http://www.arn.se. You can submit your dispute in any official language of the European Union via the ODR-platform provided by the European Commission. The dispute will then be forwarded to ARN. You can find the ODR platform here: https://ec.europa.eu/consumers/odr/, search for FIN-NET.