Just a few weeks after launching their prepaid "kard" on November 10, the Kardashian Kard may be coming off the market. The Kardashian sisters sent a notice to the bank that issues the card, University National Bank, and stated that they want out of their contract. To read the letter, click here.
So after all that promotion...why are the sisters doing an about-face?
Well, the Kardashian Kard was widely panned from the start as a high-cost prepaid card that used the Kardashians' celebrity status to get their young fans to pay with plastic. As Consumers Union pointed out in a recent press release, the Kardashian Kard has the same hidden fees and weak consumer protections as other prepaid cards. Just last week, the Defend Your Dollars Campaign also launched an online petition and Twitter campaign calling on the Kardashians to stop lending their names and images to the card.
But it looks like the last straw was broken on Friday - the day after Thanksgiving - when Connecticut Attorney General Richard Blumenthal announced that he would investigate the Kardashian Kard for potential violations of both state and federal laws. Mr. Blumenthal stated in his letter to University National Bank that he was "deeply disturbed" by the card's high fees combined with its appeal to young adults.
The Kardashian Kard may drop off the market, but there are still a lot of prepaid cards out there with gotcha fees and poor consumer protections. To read our tips for consumers on prepaid cards, click here.