The Kardashian sisters are cutting ties with a prepaid debit card venture that targets teens and carries high fees. Kim Kardashian and her sisters Khloe and Kourtney launched the signature MasterCard on November 10 with much fanfare.
Consumer advocates were quick to cry foul. The Connecticut Attorney General warned on Friday that he would investigate the program to see if it violated state laws. He called the card’s fees “predatory.”
Consumers are charged $59.95 to use the card for six months, or $99.95 for twelve months. Purchasers are then able to add money to the debit card. After the initial period, an additional monthly fee of $7.95 is charged to continue using the card. Other fees include $1 to check balances, and $1.50 to withdraw funds from cash machines. Replacement cards cost $9.95 and opting out of the program will cost $6.
A lawyer for the wildly popular reality show stars issued a statement: “The Kardashians have worked extremely long and hard to create a positive public persona that appeals to everyone, particularly young adults. Unfortunately, the negative spotlight turned on the Kardashians.”
The Kardashian sisters threw a launch party for the card at Pacha in NYC earlier this month–photo below:
Kardashian Sisters Naked and Body Painted
Photo: WENN