BET Joins The Prepaid Card Bandwagon For Worse, Not Better
What do Russell Simmons, Kim Kardashian, Lil Wayne, Tom Joyner, Suze Orman and now BET have in common? They all have their own or have endorsed a prepaid debit card.
Yes…they have all jumped into the prolific market which targets working class and low income families promising to give them all the luxurious privilege of spending money to use their own money.
BET has joined the ranks of those who expect people spend their money using a “glorified gift card” as they are called by John Ulzheimer, President of Consumer Education at SmartCredit.com.
The prepaid card is one that doesn’t help anyone establish credit, costs far too much for those who have limited budgets, and, because they allow those who use them to remain outside the banking system, too often insert the user into a permanent underclass of society, unable to progress economically.
BET has partnered with NetSpend to endorse their Control Card that promotes the following perks: no credit check;
no overdraft or other surprise fees;
no interest or late fees;
no standing in line to pay bills;
a $10 Purchase Cushion; and
a 5% APY Savings Account
That sounds pretty good to the naked eye, but as I have done with many prepaid cards before, let’s take a look at each “perk” to see if they are really benefits.