Online shoppers have been issued a warning as Klarna are set to introduce late fees as part of their service.
Klarna had been one of the only services that doesn't charge a late payment fee - but this is all about to change.
In a matter of days Klarna will begin charging customers £5 each time they are late for a payment. Following the news, the Money Saving Expert newsletter issued shoppers a warning. The company confirmed that it be introducing late fees after data revealed penalties can help reduce the likelihood of borrowers falling behind on payments.
READ MORE - Twitter down for users across Edinburgh as app and website crashes
It comes as the UK Government published new draft laws that will bring buy now, pay later services into regulation and give borrowers crucial rights and protections. However, these rules won't come into place for multiple months yet.
In terms of the upcoming Klarna changes, here is everything you need to know.
What are Klarna's new late payment fees?
The standard fee will be £5 and this will apply to orders of £20 or more - however, you won't be charged more than 25 per cent of your order value as a fee.
This means that for orders under £20, the fee will be less than £5, and you'll only be charged a maximum of two late fees for the same order.
Another important thing to note is the fact that these late fees will only be applicable after a seven-day grace period.
So if you miss a payment, you will have a week to pay it back before being charged for being late.
When are the Klarna late payment fees coming into force?
Klarna are planning to introduce their new £5 late payment fee by March 16.
However, Klarna will waive late fees until April 27 for those who take a "financial awareness" test within the Klarna app.
The service has said that this test will use the late fees as an incentive to improve financial education.
Alex Marsh, head of Klarna UK, said: “The vast majority of the 16 million UK consumers who make Klarna BNPL payments in full and on time will be able to demonstrate their responsible use of credit to other lenders.”
READ NEXT
Queen Elizabeth's final stamps features Edinburgh's Mons Meg marking anniversary of Flying Scotsman
King Charles 'evicts' Harry and Meghan from Frogmore cottage to 'make room for Prince Andrew'
Lewis Capaldi leave fans in stitches with hilarious Harry Potter doppelgänger
The date 3G is being turned off in Edinburgh as network phasing out begins
Husband branded 'dangerous' after road rage issues puts wife in uneasy position
