Kim, Khloe, and Kourtney Kardishian have decided to cancel their agreement with the lenders of the Kardashian Credit Card due to pressure from the Connecticut Attorney General.
Connecticut Attorney General Richard Blumenthal said his office has received numerous complaints from parents and has decided to take action by investigating the alleged hidden fees charged by the Kardashian Credit Card Company. Blumenthal also said that sales and advertising of the Kardashian cards have also come under fire for being misleading.
The Kardashian sisters originally intended that the credit card was to help parents keep track of their teens` credit spending. They also stressed that they do continue to maintain their good intentions they have for the card, as they wanted to help parents give cards to their teens as an alternative to cash and at the same time be able to monitor their teens` spending.
The Kardashian sisters said that these faltered intentions should be enough for them to cancel their agreement with their credit card lenders. By doing this, they say, is a way for them to positively maintain their image as teenage role models.
The cards were not only for the benefit of parents being able to know where their teens` shop but also intended to help the card holders to manage their own credit. The sisters also believe that exposure to such credit cards would make their target market realize their financial responsibilities, making financial management an important task for individuals with credit.
With all of these good intentions, however, it did not take long before parents realized the huge amount they are required to pay for the Kardashian credit cards, the Connecticut Attorney General said. The purchase price of the card, exclusive of its accompanying plan, is $9.95. The plans, on the other hand, are more expensive, amounting to $59.95 for six months and $99.95 for 12 months.
For the Kardashians` prepaid cards, deposit costs are equivalent to 2.5% of the amount they wish to load onto their teens` accounts. The credits in the cards also have a withdrawal charge of $1.50 at automatic teller machines. Upon expiration of the program, the Kardashian cards will then carry a $7.95 fee every month.
For those who have already opened and used their Kardashian cards, 30 more days are given to spend the money already deposited in the accounts. The Attorney General said that a full refund on all balances including the fees paid can also be expected.