Thursday, September 12, 2013
Debt collection services are apparently in the business of endorsing prepaid card products to their clients. John Monderine, Chief Executive Officer at Rapid Recovery Solutions Inc., said prepaid cards offer financially insolvent individuals a way of managing their finances and rising out of debt. However, Monderine pointed out that prepaid cards endorsed by celebrities have had both beneficial and detrimental effects on consumers' ability to escape debt.
"Choosing to [go to] a prepaid card rather than traditional debit cards and credit cards is often considered a responsible decision, as it can protect a consumer from debt.," Monderine said. "Celebrity-endorsed cards, however, carry unnecessary expenses. Collection services like Rapid frequently recommend prepaid cards to indebted clients. These celebrity cards have been successful in elevating awareness for prepaid plastic, but consumers must remain prudent when selecting the correct one."
Rapid Recovery cited an Aug. 27, 2013, Yahoo! Finance article that said cards endorsed by celebrities such as Suze Orman, Russell Simmons, Lil' Wayne and Justin Bieber should be judged by the fees they charge consumers, as those fees are what is most important to consumers.
For example, the costs of the RushCard (brainchild of UniRush founder and Chief Executive Officer Simmons) are nearly double the industry average, with a monthly maintenance fee of $9.95 and a $2.50 ATM charge after two free out-of-network withdrawals. On the opposite spectrum, Orman's The Approved Card charges a $3 monthly fee and $2 for ATM withdrawals; Rapid recovery said both charges are below industry averages.
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.