Maybe the Kardashians were onto something when they bailed out early on their credit card launch party.
Following major backlash over what investigators are calling "pernicious and predatory fees," Kim, Kourtney and Khloé Kardashian Odom are now looking to end their foray into prepaid debit cards ASAP.
An attorney for the reality-TV star siblings has sent a notice of termination to Revenue Resource Group, which licensed the sisters' images to use on Kardashian Prepaid MasterCards.
The family won't be commenting further, leaving it up to their legal counsel to make things right.
Ironically, the sisters made only a brief appearance at a launch party for the "Kardashian Kard," triggering brief speculation that they had bailed on their promotional duties. But all turned out to be fine...until now.
"I am deeply disturbed by this card's high fees combined with its appeal to financially unsophisticated young adults. In reality, no family can "keep up with the Kardashians" using this card," read a letter from Connecticut Attorney General Richard Blumenthal to University National Bank, which issued the cards, in which the AG asked for a full accounting of how the card is supposed to work, including a list of all possible fees and transaction costs for using it.
Consumers Union, which publishes Consumer Reports, has also spoken out against the card, which costs $59.95 to activate for six months, plus $1.50 every time cash is withdrawn from an ATM, $1 per balance check and $1.50 for every customer service call.
On Monday, the nonprofit applauded the Kardashians' decision to pull out of the venture, saying they "made the right call."
"This card—or kard—appears to specifically target young adults in evoking the name and image of the Kardashian family who showcase lives of luxury and extravagance," Blumenthal continued in a press release from his office. "Known for their reality show -- Keeping up with the Kardashians—the family is marketing a dangerous financial fantasy."
But they didn't mean to! Hence the sisters' desire to sever ties with the debit card.
"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, counsel for their company Dash Dolls LLC.
"Unfortunately, the negative spotlight turned on the Kardashians."