Suze Orman's prepaid card: Can you afford it?

[xchrom]

http://hosted.ap.org/dynamic/stories/U/US_SUZE_ORMAN_CARD?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-01-12-12-31-44

NEW YORK (AP) -- Don't choose a prepaid card just because it's from Suze Orman.

The personal finance guru this week introduced a prepaid card that she's touting as a "smarter way to stay debt free." Orman says that her Approved card costs just $3 a month "if you use it how I tell you to."

But as with most prepaid cards, the amount cardholders ultimately fork over will vary significantly depending on their spending habits. Other features of the card are worth a closer look as well.

In general, prepaid cards are used as a stand-in for debit cards by individuals who don't have checking accounts. The cards are advertised as a way to control spending or dodge steep bank fees. But the fees on prepaid cards can rack up quickly as well.

Orman isn't the first celebrity to stake a claim in the rapidly growing prepaid market. Hip-hop mogul Russell Simmons offers the Rush Card, which consumer advocates have criticized for its $10 monthly fee, among a host of other fees. Simmons also recently introduced a prepaid card in partnership with Yankee shortstop Alex Rodriguez.

[Crankie Avalon]

1. Getting to charge people fees so they can spend their own money that they put up...

...I'm in the wrong business.

[xchrom]

2. i know, right? nt

[CountAllVotes]

3. Suze Orman

She is an ass of a woman that gives out poor advice.

I was recently speaking to a lady working at my credit union. She has a mother that is 95 years old and she watches Suze Orman who was advising people to close out all of their credit cards. Her mother did this and left open only one, a Discover Card.

Now that she only has the one credit card she has found that few places take Discover card and she applied for a new VISA card. She was denied because of her age and now cannot get any new credit cards.

Do not and I repeat DO NOT listen to the advice this idiot of a woman dispenses. I've caught her more than once giving out advice that is plain wrong!

This just affirms it!

[drm604]

4. Maybe this is a dumb question

but, how does an individual offer a prepaid card? It seems like it would require a large financial institution with an established infrastructure.

Is this just a case of someone like Visa offering a card branded with Suze Orman's name? If so, what possible advantage does that name have for the consumer, as opposed to just getting a prepaid Visa?

[zipplewrath]

6. I'm sure

I haven't researched it, but I persume that yes, this is merely her selling her name to be used to sell and otherwise existing product.

[unblock]

7. bancorp bank is the issuer. suze orman is the name and reputation

suze orman is putting her reputation on this particular prepaid card program, so fans can take some comfort that if people wind up getting bilked for unexpected fees, suze will rush in to make a public and profound apology.

[xchrom]

5. my guess? the individual(s) cook up the business plan --

along w/ what ever plans to promote the card -- and they make what ever legal arrangements to split the profits with what ever institution they partner with.