Nov 30, 2010

 
 
The Kardashian sisters are seeking to cut ties with a venture that sold prepaid debit cards under their name after coming under attack for the card's high fees.

The card, which launched three weeks ago, was aimed at young adults, the same group that watches the sisters' hit cable TV show "Keeping Up With the Kardashians."

An attorney for the sisters sent a letter Monday to parties affiliated with the card asking them to immediately stop using the names and images of the three sisters.

The notice came after Connecticut Attorney General Richard Blumenthal warned on Friday that he would investigate the program to see if it violated state laws to protect consumers. He called the card's fees "predatory."

The Kardashians – Kim, Khloe and Kourtney – launched the card on Nov. 10, with much fanfare. The "Kardashian Kard" includes a picture of the trio on one side, and the sisters said at the time of the launch they were "excited ... to create their very own financial product."

But almost immediately the Kardashians came under attack by consumer advocates for attaching their names to a card with fees that far surpassed other prepaid debit cards on the market.

"The Kardashians have worked extremely long and hard to create a positive public persona that appeals to everyone, particularly young adults," says the letter from Dennis Roach, legal counsel of Dash Dolls LLC, which represents the three sisters. "Unfortunately, the negative spotlight turned on the Kardashians."

Just to buy the card and use it costs $59.95 for six months, or $99.95 for 12 months. That does not include any money on the card. The person buying the card must add money onto it.

The initial feels were just the start. After those six or 12 months are up, it costs $7.95 a month to keep using the card. Users have to pay $1.50 to withdraw cash from an ATM, and $1 to check their balance. Talking to a customer representative on the phone costs $1.50 for each call, and canceling the card costs $6.

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