Financial advisor and author Suze Orman’s prepaid debit card is no longer in service. Starting in mid-June, Bancorp, her partner for the product, encouraged all cardholders to with a balance on the card to either transfer or spend it before July 1, 2014. Those with a remaining balance on the card will have to wait for Bancorp to send the funds to them via check.
No details were given regarding why the Suze Orman prepaid debit card will be axed, and Orman’s camp has stayed quiet on the discontinuation.
Some speculate that this venture was simply not profitable for Orman. She originally wanted to offer her prepaid debit card at no cost to customers; yet the costs associated with creating the card and managing all aspects of keeping it operational forced her to charge a $3 fee to those who wanted to open one. It would appear that even the low cost of $3 a month was not profitable enough for Orman to keep the card on the market.
Rob Rosenblatt, an industry consultant and former chief executive of the firm that issued Russell Simmons’ prepaid card said, “You’re dealing with a lot of customers who have a lot of things go wrong, and they need their money to put milk and bread on the table. Three dollars is a really tough baseline from which to serve customers who are going to be calling a lot.”
Orman’s prepaid debit card goal
Suze Orman’s goal was to provide a prepaid card that any consumer could open at an affordable price. She also wanted prepaid cards, such as her Approved Prepaid Card, to influence FICO and reputable credit score sources. Orman felt it unfair that consumers were not able to improve their credit with a prepaid card.
Part of her goal was achieved when TransUnion, one of America’s three biggest credit unions, agreed to use data collected from Approved Cards when calculating credit worthiness of those who owned these prepaid cards.
As of July 2, 2014, there has been update on Suze Orman’s Approved card website. There is still information on how to reach a representative for her prepaid card on her website. Get in touch with a representative if you would like to learn about the balance you had while using the card, and to figure out when your check will be sent in the mail to you.
If you are in the market for a new prepaid card, check out a comparison of the best cards on the market.