The Kardashian Kard doesn't help anyone keep up with anything other than being broke, Attorney General Richard Blumenthal said, so he warned parents over the weekend to avoid buying the prepaid debit card for teens.
Within days of Blumenthal contacting University National Bank, which issues the cards, the Kardashian family lawyer called the attorney general to say the family wants to sever ties with the company, Blumenthal’s staff said.
“I am cautiously pleased that the Kardashians are terminating ties to the Kardashian Kard -- a prepaid debit card loaded with predatory fees,” Blumenthal said. “The Kardashians perhaps recognize that fans will be fuming over these money-eating cards. My office remains concerned until University National Bank and MasterCard officially agree to stop selling these cards -- with or without the Kardashian name.”
The Kardashian Kard comes with a photo of Khloe, Kim and Kourtney’s smiling faces and promotes itself as a way to “control spending,” because only the consumer can spend the money loaded onto the card. The sisters' company had an agreement with the Revenue Resource Group, LLC, granting a limited license to use the names, photographs, likenesses and endorsements of the women in connection with “the marketing and sale of MasterCard prepaid debit cards.
Blumenthal was concerned that customers must pay in advance for the card credit, accruing $100 in fees or more.
“The card is filled with gotcha fees and charges, such as $99.95 annual fees, $7.95 monthly fees (after the first year), ATM withdrawal fees, bill pay fees, loading fees -- and even charges for talking to a live operator at their service center, and a card cancellation fee,” Blumenthal said.
He said the cards are marketed at teens, who are not savvy about finances to begin with.
“Lose it before you use it -- ought to be this card’s motto,” Blumenthal said. “This card -- or kard -- appears to specifically target young adults in evoking the name and image of the Kardashian family who showcase lives of luxury and extravagance. Known for their reality show -- Keeping up with the Kardashians -- the family is marketing a dangerous financial fantasy.”
Blumenthal also warned that purchases at gas stations or hotels might result in a multi-day hold on the card.
“My office is seeking more details from University National Bank -- the card issuer -- about its numerous fees and financial penalties, and raising concerns about potential threats to consumers, particularly young adults,” Blumenthal said.