Bed brand Casper Sleep has temporarily ceased selling goods to consumers on credit, parking an agreement with its finance partner while it clarifies its regulatory obligations.


It follows a story in the Financial Times last week that claimed the direct-to-consumer brand has been selling goods on credit without permission from the Financial Conduct Authority.

The newspaper said Casper had not obtained authorisation from the FCA to introduce its customers to Klarna, the Swedish banking business.

Furniture and bedding retailers that offer consumer finance will typically apply to be authorised credit brokers by the regulator.

Casper reportedly told the Financial Times it had been told by Klarna it didn't require FCA authorisation, and also cited an exemption for the requirement to hold a licence if loans are paid off within a year, as is the case with the finance package offered on Casper products.

Klarna told the newspaper it had informed Casper that FCA authorisation was required.

On Sunday, Casper told The Furnishing Report in an emailed statement that "We take these matters very seriously and are actively looking into the situation.

"We have put our partnership with Klarna on pause until further notice."