Kardashian Sisters Seek to End Credit Card Relationship

By PopEater / Wire Services Posted Nov 30th 2010 07:30AM

The Kardashian sisters are seeking to cut ties with a venture that sold prepaid debit cards under their name after coming under attack for the card's high fees.

The card, which launched three weeks ago, was aimed at young adults, the same group that watches the sisters' hit cable TV show 'Keeping Up With the Kardashians.'

An attorney for the sisters sent a letter Monday to parties affiliated with the card asking them to immediately stop using the names and images of the three sisters.

The notice came after Connecticut Attorney General Richard Blumenthal warned on Friday that he would investigate the program to see if it violated state laws to protect consumers. He called the card's fees "predatory."

The Kardashians -- Kim, Khloe and Kourtney -- launched the card on Nov. 10, with much fanfare. The "Kardashian Kard" includes a picture of the trio on one side, and the sisters said at the time of the launch they were "excited ... to create their very own financial product."

But almost immediately, the Kardashians came under attack by consumer advocates for attaching their names to a card with fees that far surpassed other prepaid debit cards on the market.

"The Kardashians have worked extremely long and hard to create a positive public persona that appeals to everyone, particularly young adults," says the letter from Dennis Roach, legal counsel of Dash Dolls LLC, which represents the three sisters. "Unfortunately, the negative spotlight turned on the Kardashians."

Just to buy the card and use it costs $59.95 for six months, or $99.95 for 12 months. That does not include any money on the card. The person buying the card must add money onto it.

The initial feels were just the start. After those six or 12 months are up, it costs $7.95 a month to keep using the card. Users have to pay $1.50 to withdraw cash from an ATM, and $1 to check their balance. Talking to a customer representative on the phone costs $1.50 for each call, and canceling the card costs $6.

Losing the card results in a charge of $9.95. If the loss is reported within two days, then losses are limited to $50. But if the loss or theft is not reported, and the issuer believes the user knew it was lost or stolen, then losses could be as high as $500, according to the terms and conditions on the Kardashian Kard website.

Those fees caught the attention of Blumenthal, who said on Friday that he was investigating the card because of the fees and its appeal to financially unsophisticated young adults.

"Keeping up with the Kardashians is impossible with this card, where consumers lose money before they use money. Even before consumers spend a dime, the Kardashian Kard fees swallow the card's value," Blumenthal said in a statement Monday after news that the Kardashians were cutting ties to the card.

In a statement late Monday, card-issuer University National Bank confirmed that it had ended the sale of the Kardashian cards. Consumers who bought the card will get their money back, including fees that they might have incurred, it said.

MasterCard, which was a partner in the card, said in a statement that "the decision to end the program affirms that consumers did not find value in this particular prepaid offering."

Representatives from Mobe Inc. and Mobile Resources Card, also affiliated with the card, did not return requests for comment.

Consumers Union, the publisher of Consumer Reports, had come out strongly in recent weeks against the Kardashians for using their celebrity status to hawk a prepaid card loaded with fees.

"Any other celebrity or business that is thinking of associating its name with a prepaid card should take a close look at the fees and protections, and say 'no thanks' unless the fees are low and the missing consumer protections are added," Gail Hillebrand, director of Consumers Union's Defend Your Dollars campaign, said after hearing Monday's news.

Consumer Union is calling on the newly authorized federal Consumer Financial Protection Bureau to make reining in abusive prepaid card practices a top priority.

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Comments

(15)

Tuesday 30 November

By themeeker

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How can WE end OUR relationship with these cows?

By Sweet Home Alabama

Amen to that!

Wednesday 01 December

By Mary

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I WISH they (and MOM) would end their relationship with wearing FUR !!!!
They were on the View yesterday, and Barbara asked them what they were famous for? "Deer in headlights"
Duhhhh!!!

By fhfei

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An attorney for the sisters sent a letter Monday to parties affiliated with the card asking them to immediately stop using the names and images of the three sisters.I love this , So does My boyfriend .he is almost 11year older than me .i met him via age'lessmate.c'om a nice place for seeking age le ss love.which gives you a chance to make your life better and open opportunities for you to meet the attractive young girls and treat you like a king. Maybe you wanna check it out or tell your friends..

By mcav510

Have these women ever done anything productive in their lives? Everything they do is self-serving. I think it is a shame that many young women watch and admire these women. They are very poor role models.

By Marcus

The Kardashians are beautiful girls, but why would anyone need a credit card with their picture on it? Also, they say that they have created a positive self-image, when all Khloe and Kim have ever done is chase atlethes and other men with money. And let's not forget the foul language they use, but they've created a positive self-image? I beg to differ! All I've ever seen on their show is Chris (,the mother) run around town trying to market them in any way possible; talk about a pimp! And if the girls are not dating anyone famous, she turns into a REAL b*tch! Everything is about the money with this family! What a positive self-image!

Tuesday 01 February

By Sam Price

Khole looks like a BIG MAN. I would never buy anything she is putting her name on.

By Msmich

If there ever was proof that these woman are out for the bucks, this is it. They knew and believe me so did their Mom. She is a ruthless business woman. So they better not try to say that they didn't know that the card was a rip-off. They knew and only cared about what it was going to bring in for them - another case of greed over principles.

By jeffrey lebowski

this card scheme perfectly suits the karkrashians: there are no worse predators on this planet, and if bad taste were punishable they'd be on death row

By DJ

Let us not forget Brethren that the good and wise Matt Lauer of the Today show feels that they are the the Top people of 2010! Lord knows i wouldn't let this guy pick horses in a race for money..lol

By badass

i'm sorry, but Khole is brutal. she wasn't born a girl, no way.

By Tiffany

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Now they want to sever all ties after it wasn't received well... O wow really? So they got their checks and their pictures on the cards and now they want nothing to do with it? I think they're probably under contract to promote the product for another year...

By kim

can you end a contract that easy ???? Here goes some lawsuits!!!!!!!

By leni

A week ago I didn't dislike this family, I chose to ignore them. But as far as disliking the women, the card has turned me toward just that. If this family is good at anything its business. So how did they sign to endorse this card without asking what the terms of the card are? Do they only object because it's being investigated? It was ok to rip kids off as long as no one notices?

Sunday 05 December

By Brento83

@ Leni, thats what I'm saying, they cancelled the Kardashian Kard less than ONE week after releasing it!!

If they actually cared you think they would have done a little research on the rates before endorsing it.

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