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SmartCredit.com Consumer Education President John Ulzheimer on Justin Bieber’s prepaid debit card’s fees.
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Look we know some of you out there love Justin Bieber but we have a warning for you stay away from his latest financial product.
Here to explain John Alzheimer president of consumer education for Smart credit dot com.
John OK and we have put up the full screen on the fees on beavers card you're done this -- -- It it -- fat -- -- five monthly -- a dollar fifty withdrawal feet eight bucks to replace a card three dollars if you don't use the card.
What he set.
Yet it if you just take.
The monthly fee and nothing else need meaning that you do you actually nothing else fugitives -- -- constituent -- -- still paying.
A little over 47 dollars a year as an annual fee to get access to your -- -- Com this card -- -- I'm saying this compare to some of the other products on the market.
Is actually not as bad -- summit -- on -- that.
It's about the flawed way of doing this because that's like saying my broken arm -- not as bad as your broken clock turns to bad things and trying to say that one -- that well.
And the out.
You -- I have talked about Suzie Orman was talked about Russell Simmons can card as she and even Magic Johnson has a card and let's just be clear about what the problem is here so celebrity's -- ways to raise money make more money.
And they're doing it half.
Yeah I think what's happening at some of these card issuers recognize that there is a market.
And that instead of marketing a product like normal financial institutions are -- -- It -- actually -- themselves up with a celebrity.
This is the only financial services product that markets the slight -- little Wayne Russell Simmons and Broadcom morally -- George Lopez and out Justin Bieber no other products can say.
We have this list and a level celebrity that -- doesn't invest.
This is really the issue is they're trying to snag on to.
The celebrity's followers -- mean Bieber has millions of followers -- like Twitter and back in those types of social network outlets.
This is -- yet another way for them to to try to -- and monetize.
That base but consumers are voting with their feet on the show you this they're gonna put a 117 billion dollars on cards this year up from 82 billion in 2012.
Why do you object to this consumer product.
I don't like this product for a couple of reasons and not necessarily to be a card that about prepaid debit cards -- general -- is that there are mass marketed first off there is this tacit suggestion.
That bear a good for your credit and be cheaper than.
Checking accounts and credit cards that's only true and very unique scenarios -- -- not true across the board that's one reason I don't -- it second.
Is you're trying to get people used to paying -- -- to use of their own money.
You can get credit cards -- twentieth 30000 are limits.
They have no annual -- -- someone else's money significant protections under various federal laws you don't enjoy any of that stuff under these prepaid debit cards you can go to the mall -- get a gift card.
Put fifty box audit pay a dollar for the -- news that the exact same way you can use one of these prepaid debit cards went out all of the fees same functionality.
John Alzheimer.
You said it best I -- -- idea and they drive me crazy people paying their access their own money thank you for coming on tonight great job was always.
Banks -- nice to see -- good to see you.
