Kim Kardashian credit cards may get youngsters buried in debt, Attorney General warns

Kim Kardashian credit cards may get youngsters buried in debt, Attorney General warns

Kim Kardashian may be a celebrity and role model for many American youngsters, but her sponsored credit cards may not be the best for them, at least according to the Connecticut Attorney General. A statement was issued today by Attorney General Richard Blumenthal warning young American consumers against using credit cards targeting their huge market. He also asked the card issuer University National Bank about its marketing practices to promote the cards’ use in his state. The bank said it is yet to receive the letter from Blumenthal and will conduct a review once they do so. In a statement, the bank clarified that the cards are prepaid products which “are proven to meet a financial need.”

“Keeping up with the Kardashians is impossible using these cards — laden with pernicious and predatory fees that swallow card value,” Blumenthal said. “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.”

Blumenthal adds that, “The family is marketing a dangerous financial fantasy,” while pointing out that the credit cards are being associated with the Kardashian’s affluent and glamorous lifestyle to appeal to young people.

The prepaid credit cards were developed with MasterCard and were unveiled by the Kardashian sisters Kim, Khloe and Kourtney in a posh New York City nightclub in early November. Consumers as young as 16 years old can use the cards which are loaded by their parents. Financial activity can be monitored by parents through their mobile devices. The card distributor claims that the Kardashian-sponsored cards help to instill wise spending habits in the sisters’ fans.

Posted by Kade Quinn on Saturday November 27 2010, 4:18 AM EST. Ref: ABC News. All trademarks acknowledged. Filed under Entertainment. Comments and Trackbacks closed. Follow responses: RSS 2.0