The Kardashian sisters today came under fire by consumer advocacy groups for the predatory hidden fees of their newly released prepaid debit cards. Called the Kardashian Kard (kute!), the card comes “loaded with hidden fees and weak consumer protections,” according to the Consumers Union, the nonprofit publisher of Consumer Reports.
Here’s a sampling of the card’s fees:
- Consumers signing up for the Kardashian Kard have two options: A six month plan for $59.95 or a 12 month plan for $99.95. The six month plan covers the $9.95 purchase fee, $5 minimum deposit, and a $7.95 monthly fee for the duration of the plan. The 12 month plan is identical except it includes the $7.95 monthly fee for the full year.
- In addition, consumers will be subject to a $1.50 fee for withdrawing funds at an ATM (plus the fee the ATM operator charges); $1 fee if ATM or point of sale transactions are declined; $1 fee to check balances at ATMs; $1.50 to speak by phone to a customer service representative; and $9.95 to replace a lost or stolen card.
- After the initial six or 12 month purchase period for the Kardashian Kard expires, consumers must pay a $7.95 monthly fee for as long as they use the card. Cancelling the Kardashian Kard will result in another $6 fee.
The card is being marketed to young people with little or no access to traditional financial institutions. In other words, poor minorities.
-Cord Jefferson is a staff writer at The Root. Follow him on Twitter.