Bieber Making $3.75M to Hawk Prepaid Card for Teens
Which, of course, features high fees
By Evann Gastaldo, Newser Staff
Posted Apr 11, 2013 10:32 AM CDT
Canadian singer Justin Bieber performs on stage during a concert in Zurich, Switzerland Friday, March 22, 2013.   (AP Photo/Keystone,Walter Bieri)

(Newser) – Justin Bieber is getting paid $3.75 million—plus potential royalties and a stock option—to promote a prepaid debit card to teens, the New York Times reports. And, not surprisingly, the SpendSmart card has high fees, a typical and controversial part of the prepaid card industry. Specifically, there's a $3.95 monthly fee, a $1.50 ATM withdrawal fee (in addition to ATM surcharges), a 50-cent fee to check your balance at an ATM, a $3 fee if the account is inactive for 30 days, a $7.95 fee to replace your card, and fees of anywhere from 75 cents to $2.95 to load money onto the card.

A lawyer for the publisher of Consumer Reports says that while the fees aren't quite as bad as those attached to many other prepaid cards, "We would not recommend that parents use prepaid cards for their teens." Since it doesn't help them establish a credit history or any sort of banking relationship, opening up a checking account is a better solution, she says. Another consumer education expert agrees: Sure, SpendSmart's card may not be as bad as the one the Kardashians hawked, but "that’s like saying my broken arm is not as bad as your broken arm," he said on a recent Fox appearance.

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Showing 3 of 9 comments
Tology
Apr 12, 2013 9:26 AM CDT
Has anyone ever heard of that invention you use to buy things, it comes with no fees, is accepted everywhere and cannot be overdrawn, what is that called again.....oh yeah, CASH.
Your_Name
Apr 11, 2013 7:02 PM CDT
His lousy music is the real rip off...It's the music that the NWO is planning to use in the New American Private Debtor Prison System to torture homies.
clmsman
Apr 11, 2013 4:17 PM CDT
Money begets more money!