Kardashian Prepaid Card Gets the Axe; Called 'Predatory'
Connecticut Attorney General Richard Blumenthal went even further than that in his denouncement of the card, calling it "predatory." While the Kardashians are apparently cool with sex tapes and airing their dirty laundry on camera, this was the sort of negative publicity they wanted to avoid."It turned out to be kind of a PR nightmare for them," says Curtis Arnold, founder of CardRatings.com. "I'm not sure they knew what they were endorsing," he adds. "A lot of these prepaid cards are pretty confusing."
The Kardashians' lawyer reportedly sent a letter to the financial company behind the card saying the sisters wanted out of what the attorney termed the "negative spotlight" of media attention about the card's sky-high fees. A couple of examples of those fees include $1 to check the card's balance at an ATM, and $6 just to cancel the card. "There are very few consumer-friendly prepaid cards," Arnold tells WalletPop. "There's a general negative bias among consumer advocates against these products."
Apparently, Kardashian fans are a more economically-savvy bunch than the parties involved expected; only 250 cards had sold since they debuted three weeks ago. The card issuer has announced that anyone who bought one of the prepaid cards will get their money back. After all, the $100 it cost to use the card is no small change, especially for the teens and young adults -- many of whom don't have full-time jobs yet -- the people behind the card were hoping to reach.
"I'm personally glad that they pulled it," says Arnold. He suggests that the reality-TV sisters could turn this into a positive experience by using the instance to teach the young people that watch their show about financial literacy.