Last Updated Jan 10, 2011 3:45 PM EST
Add this to the no-good-deed-goes-unpunished file: The Kardashian sisters and mom, Kris, have been slapped with a $75 million law suit by the Fresno, California firm behind the Kardashian Kard, a defunct prepaid card that bore the ladies' last name for just three weeks. The sisters abandoned the deal after allegations from Connecticut's attorney general that the card had "predatory" fees. The deal also incited much criticism from the media (including me), as well as consumer advocates.
But say what we want about the has-been card, the issue in the suit is whether or not the Kardashians breached their contract, as the lawsuit claims. If so, there's a bigger lesson here than to avoid fee-ridden financial products; it's read before you sign. You can take a look at the lawsuit and the Kardashian's contract here courtesy of Revenue Resource Group and The Fresno Bee.
Revenue Resource Group's lawyer, Nate Miller, says the $75 million claim in the law suit stems from the card's projected revenue during the Kardashian's contract term. "The Kardashians threw [Revenue Resource Group] under the bus," says Miller. "They've been put in the negative spotlight where working with banks is now extremely difficult...Banks can be picky. They don't have to go with my client and they won't."
In the agreement, which the sisters signed on June 16, 2010, they acknowledged that customers will, at the very least, pay a $9.95 initial set-up fee and a $7.95 monthly maintenance fee. (A Kardashian family rep did not return requests for comment.)
A case management conference is scheduled for May 2 -- where a court is expected to set a trial date.
More on MoneyWatch:
- Credit Card Danger: Don't Add Authorized Users
- Best Credit Cards for Teens
- Mom, Can You Co-sign My Credit Card
- Credit Cards: Steer Clear of Store Credit Cards
- 0% Financing: How It Can Damage Your Credit
- 6 Ways to Never Pay an ATM Fee Again
- Should I Save or Pay Down Debt?
- Credit Cards: 5 Rules for New Users