Oh, wait, that would probably be be 90% of the people that use these loan providers to buy something. They should probably be regulated out of existence instead.
'Payday loan companies' is quite a loaded term, generally used for companies with predatorially high interest rates (three-plus figure APRs). Klarna on the other hand is relatively competitive with a normal credit card, with rates of 20-30% APR typical.
I've never used Klarna myself, but I can see myself using it as part of a plan to buy expensive goods (furniture, white goods, etc.), and I don't think that there's any particular problem with it (from a consumer perspective) that makes it worse than a normal credit card.
Whether their business can support as many write-offs as it sounds like they make is ultimately not something I can comment on.
Could you source this affirmation?
Like, this restricts automatic refusal of service due to automated profiling, but doesn't restrict automatic acceptance of service due to automated profiling, and it doesn't restrict automatic recommendation to refuse service which then is rapidly 'reviewed' by a human.
It’s also not explicit that the “legal effects” need be negative, just significant, which I think entering into a loan agreement probably is.
On the plus side, I don’t think it will take too long for case law to develop on these points.