Kardashian Card Goes Kaput Amid Criticism

Kim, Khloe and Kourtney Kardashian axe prepaid debit card amidst criticism.

Nov. 30, 2010 — -- The Kardashian card is no more, and the reality TV stars behind the prepaid debit card debacle don't want to talk about it.

"We are not working with the bank anymore and that's all we're allowed to say," Kourtney Kardashian told ABCNews.com today.

Monday, Dennis Roach, lawyer for Kim, 30, Khloe, 26, and Kourtney, 31, announced that the Kardashians were pulling their name off the Kardashian Prepaid MasterCard after being slammed for the card's hefty fees. The decision came in the wake of Connecticut Attorney General Richard Blumenthal's investigation into the card, who called the card's fees "predatory." (Cost for using the Kardashian card for one year -- $99.95.)

"The Kardashians have worked extremely long and hard to create a positive public persona that appeals to everyone, particularly young adults," Roach said in a statement. "Unfortunately, the negative spotlight turned on the Kardashians as a result of the Attorney General's comments and actions threatens everything for which they have worked."

Last week, Blumenthal -- who is the state's U.S. Senator-elect -- warned consumers of the perils of credit cards marketed at young adults and revealed that he demanded that University National Bank, which issued the Kardashian Kard, provide specific details about how the card is promoted and sold in Connecticut.

"Keeping up with the Kardashians is impossible using these cards -- laden with pernicious and predatory fees that swallow card value," Blumenthal said in a statement. "These cards are feckless financial tools designed to promptly diminish in value with virtually every transaction -- and even when consumers don't use the card at all."

In addition to Blumenthal, Consumers Union, the nonprofit publisher of Consumer Reports, chastised the Kardashians for promoting a fee-heavy card and cautioned other celebrities against blindly promoting products.

"After enduring a week of bad publicity, the Kardashians have made the right call by pulling out of the prepaid card business," Gail Hillebrand, director of Consumers Union's Defend Your Dollars campaign, said in a statement on Monday. "But other prepaid card rip-offs are rampant in the marketplace and consumers remain vulnerable to high fees and weak protections."

"Any other celebrity or business that is thinking of associating its name with a prepaid card should take a close look at the fees and protections, and say 'no thanks' unless the fees are low and the missing consumer protections are added," Hillebrand added.

Kardashian Kard Falls Flat

It's an abrupt end to the Kardashians' latest business venture. Just weeks ago, the trio celebrated the launch of their card at New York City's Pacha nightclub.

When asked by "Entertainment Tonight" which one of the trio spends the most, Kourtney said, "No question, it's Kim." Kim, who once admitted to spending $2,500 on a pair of lace-and-python Christian Louboutin booties, nodded her head in agreement.

Targeted at the Kardashians' teen fans, the card allowed parents to put a predetermined amount of money on the card then track their teen's spending habits via cell phone.

Despite the Kardashian clan's lavish lifestyle, Mobile Resource, the company that released the card, said at the time of the launch that reality TV's most famous family can breed budget-friendly spending habits in their fans.

"It is clear that the Kardashians are very wealthy, Kim also just spent $30,000 on a purse," a representative for Mobile Resource told ABCNews.com. "They can well afford their expenditures. They wanted to take state of the art technology to their fan base, providing them with a vehicle to protect their money and control and track their spending with all instant alerts to their cell phone."

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