It seems like just yesterday Kim Kardashian and their sisters announced their prepay Mastercard, and now it has been cancelled under criticism of high fees. Those who did sign up have 30 days to use the card, and will be refunded the fees spent so far. Conveniently, this happens to coincide with the holiday shopping season.
Actually, it wasn’t yesterday that the card was launched– it was three weeks ago, on November 9th. A Minnesota lender on Monday stopped sales of the Kardashian Kard, after Connecticut Attorney General Richard Blumenthal said it carried “outrageous” fees that unfairly targeted financially unsophisticated young adults.
The St. Paul, MN company working with Kardashians’ company Dash Dolls LLC says it will see that card holders get refunds and will make an effort to minimize any inconvenience.
The debit card, that featured the likeness of the Kardashian sisters held the potential of guiding unsophisticated young adults to try and imitate that Kardashian’s excessive spending. The card included fees that could reach $100 a year, plus fees for ATM withdrawals, cancellations and talking with a phone operator.Despite the criticism of the Kardashian Kard, prepaid debit cards are not a bad idea, and there are many other options when it comes to this form of financial management for young adults and teens. These are not “credit cards.” They simply have the Mastercard or Visa logo, but can’t be used unless the money in already in the account. Users, and often the users parents can go online and track spending. In the case of the Kardashian Kard some transactions and tracking could be conducted via mobile phone.
While some are concerned how the whole debit card scandal will effect the Kardashians, it seems that they will most likely bounce back as usual. Fans will just have to find another way to keep up.