Friday, December 3, 2010

The Kardashian Rip-Off Prepaid Debit Card

4th NW Quadrant: The Approval Matrix

From CS by Laurent Belsie

Prepaid debit cards are not the best of deals. They come with lots of fees without all the protections of a credit card.

But even by those standards, the Kardashian debit card stood out for its high fees: a $9.95 activation fee and charges of $7.95 per month, with a $1.50 fee to call customer support and a $6.00 fee to shut down the card.

Which is why reality quickly caught up with the E! reality-show sisters. Criticized by personal-finance guru Suze Orman and on the verge of an investigation by Connecticut's attorney general, the Kardshians through a lawyer said Monday they no longer wanted their names associated with the card.

Later in the day, University National Bank and its partner, The Revenue Resource Group LLC, pulled the plug on the venture. Launched Nov. 9, the Kardashian Kard didn't last a month.

Existing cards will be active for 30 days and then receive refunds of any balances and any pre-paid fees, University National Bank said in a statement.

So how many people actually ponied up for the celebrity card? All of 250, according to the bank.

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