The Kardashian Kard is being pulled just three weeks after its November 9 launch amid slow sales and outcry about high fees from groups such as Consumers Union, reported The Los Angeles Times. St. Paul, Minn.-based lender University National Bank said just 250 customers had bought the card, which [image-nocss] is stamped with a photo of Kim, Kourtney and Khloe, stars of the Keeping Up With the Kardashians show on E!.
On Monday, an attorney for the sisters sent a letter to the parties with whom they had teamed to launch the Kardashian Kard and demanded that the images and names of Kardashians be removed from the card immediately. By the end of the day, the Kard's website, www.kardashiankard.com, had been shut down, added a Forbes report.
In a letter to University National Bank, which issues the Kardashian Kard in an agreement with MasterCard, Blumenthal is demanding specific details about the card terms, fees and how it is promoted and sold in Connecticut.
Kardashian Kards are described as prepaid MasterCard debit cards, requiring consumers to pay in advance for card credit, along with significant "activation" and "monthly" fees.
Such "prepaid debit cards" resemble gift cards under Connecticut law and could be subject to the state gift card law, designed to protect consumers from fees that can drain value, he said.
Among the prepaid debit cards now on the market, the Kardashian Kard is particularly troubling because of its high fees combined with its appeal to financially unsophisticated young adult Kardashian fans.
"'Lose it before you use it' ought to be this card's motto," Blumenthal said. "Keeping up with the Kardashians is impossible using these cards, laden with pernicious and predatory fees that swallow card value. These cards are feckless financial tools designed to promptly diminish in value with virtually every transaction, and even when consumers don't use the card at all."
He added, "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...the family is marketing a dangerous financial fantasy. Ironically, the Kardashian Kard will distance consumers from the financial abundance key to the Kardashian's lifestyle. Consumers lose money before they can use it with this card. 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."
Added Blumenthal: "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 also warned that common purchases such as at gas stations or hotels may result in a multi-day hold on the card far exceeding the actual purchase price. For some consumers, such holds may tie up critical funds needed for other daily living expenses.
In a letter to University National Bank, Blumenthal has requested details including the bank's relationship with both MasterCard and the Kardashian family in the marketing, distribution and sale of the Kardashian Kard; where and how the card is promoted to Connecticut consumers; whether the card carries an expiration date and how such date is disclosed to consumers; an explanation of all fees associated with the card, including any inactivity fees.
Click hereto view Blumenthal's full letter to University National Bank.
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