Just had a phone call from Klarna bank. They accepted there were issues affecting customers using the Upgrade Program and that they are taking steps to correct the fallout regarding credit searches.
I suffered the issue whereby my application for credit was successful (direct debit mandate email and 10% deposit taken from bank) but I was not able to sign the credit agreement digitally. This resulted in a hard credit search but no trace of my details with any of the companies (Samsung, Klarna or Close Bros.).
I have since ordered using the 3 installments option as this only conducts a soft search and I did not want any further hard searches.
The advisor I spoke over the phone admitted the issues faced by a number of customers and that they are looking to rectify these mistakes. For me, they agreed to remove the hard search (Klarna have emailed me this so I have this in writing) on the basis that no agreement was finalised during my first attempt and I have since opted for a different payment arrangement.
If anyone else is worried about the hard searches, please be aware that Klarna are able to remove the searches but the process can take up to 60 days. This was the most concerning point for me so be assured that this can be rectified and that Klarna do seem to be holding their hands up and trying to fix these issues.
I also noticed that they are also conducting manual credit applications for those who were accepted, but were not able to sign the credit agreement digitally. This means that if you want to proceed with the upgrade, they can arrange the credit agreement manually and if you have had multiple hard searches, they will remove these and only leave the 1 hard search.
Hope this helps!
