Blumenthal Complaint Spurs Action To Stop Kardashian Kard

HARTFORD — Attorney General Richard Blumenthal said that legal counsel for the popular media personalities the Kardashians have notified his office that they are seeking to immediately end their association with the Kardashian Kard prepaid debit card.

This action follows Mr Blumenthal’s announcement November 26 that he is investigating the Kardashian Kard because of its predatory fees combined with its appeal to financially unsophisticated young adults.

Mr Blumenthal, who is Connecticut’s US Senator-elect, said in a release that he is pleased the Kardashian family recognizes his concerns, but his office will monitor whether University National Bank and MasterCard ultimately eliminate this card.

“I am cautiously pleased that the Kardashians are terminating ties to the Kardashian Kard — a prepaid debit card loaded with predatory fees,” Mr Blumenthal said.

“A larger lesson — common to other prepaid debit cards — is that targeting young adults with predatory card terms and conditions may bear close scrutiny and caution.

“Keeping up with the Kardashians is impossible with this card, where consumers lose money before they use money,” Mr Blumenthal said. “Even before consumers spend a dime, the Kardashian Kard fees swallow the card’s value.”

He said the card is filled with “gotcha fees and charges,” such as $99.95 annual fees, $7.95 monthly fees (after the first year), ATM withdrawal fees, bill pay fees, loading fees — and even charges for talking to a live operator at their service center, and a card cancellation fee.

“The Kardashians perhaps recognize that fans will be fuming over these money-eating cards. My office remains concerned until University National Bank and MasterCard officially agree to stop selling these cards — with or without the Kardashian name.”

The Kardashians and their company, Dash Dolls, had an agreement with The Revenue Resource Group, LLC (RRG) granting a limited license to use the names, photographs, likenesses, and endorsements of Kim, Khloe, and Kourtney Kardashian in connection with “the marketing and sale of MasterCard prepaid debit cards in the name of the Kardashians.”

In a letter to RRG and University National Bank, legal counsel for Dash Dolls announced it “hereby terminates the Agreement in its entirety, effective immediately.”

The notice cites Mr Blumenthal’s concerns about the card, including questions raised about whether it conflicts with Connecticut’s gift card law and other consumer protection laws.

In a letter to University National Bank, the attorney general demanded specific details about the card terms, fees, and how it is promoted and sold in Connecticut.

Mr Blumenthal said the “prepaid debit cards” resemble gift cards under Connecticut law and could be subject to the state gift card law, designed to protect consumers from pernicious and predatory fees that can unconscionably drain value.