NEW YORK (WCBS 880/1010 WINS) — Keeping up with the Kardashians can get pretty expensive – especially when using the new pre-paid credit card recently unveiled by sisters Kim, Kourtney and Khloe.
The Kardashian Prepaid MasterCard is “a fast and convenient way to manage money,” according to its official website, but the card has come under scrutiny due to its terms, conditions and fees.
Connecticut Attorney General and Senator-elect Richard Blumenthal called the fees “outrageous” and criticized marketing the card to teenagers.
“We’re warning parents that these so-called Kardashian Kards are really an outrageously expensive form of pre-paid debit card that belies the promise of affordability,” Blumenthal said, adding the cards “also send the wrong lessons about managing money.”
“These debit cards should be destined to failure, but they seem to exploit the Kardashian image or aura of luxury and extravagance,” Blumenthal said.
The card offers a six-month plan for $59.95 and a 1-year plan for $99.95. The cost of both cards includes a $9.95 purchase fee, $5 minimum deposit and a $7.95 monthly fee after the first year.
Additional fees include $1.50 fee for withdrawing money at an ATM, a $1 fee to check balances at an ATM and $6 to cancel the card.
Blumenthal has sent a letter to University National Bank, which issues the card, expressing concern over the “menu of fees” and asking for more specifics.
“I am deeply disturbed by this card’s high fees combined with its appeal to financially unsophisticated young adults. In reality, no family can “keep up with the Kardashians” using this card,” Blumenthal wrote in the letter.
Blumenthal also said the card’s fees raised “considerable ethical, and perhaps legal questions.”
“They’re not linked to a bank account, so they’re not subject to any government regulation or oversight,” Blumenthal said.
University National Bank said it will review Blumenthal’s request.