Reality television stars Kim, Khloe and Kourtney Kardashian's latest business venture, a pre-paid debit card, has been strongly criticized as a terrible financial product and it has been pulled from the market.
According to the Los Angeles Times, attorney generals and consumer groups, such as Consumers Union, have said that the card takes advantage of financially unsophisticated young people and was a terrible financial product.
The pre-paid MasterCard could be purchased by parents to give their children an opportunity to manage their finances with a small amount of credit. The card, however, was stacked with hidden fees. Consumers could pay up to $100 in fees per year. There were also charges to add money to the card, use an ATM and to cancel the card.
Attorneys for the sisters' corporation, Dash Dolls, LLC, sent a letter on Monday to the company behind the pre-paid card terminating their endorsement of the card. According to the Los Angeles Times, the sisters said that they had worked hard to craft their positive public image and were seen as "honest, ethical, and fun-loving" and that they are caring to others. They also said they were terminating the endorsement because the card might violate consumer protection laws.
Kardashian Kard pulled amid complaints of "egregious fees" (Los Angeles Times)
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