Financial Guru Orman Launches Decoupled Debit Card
Celebrity personal finance expert Suze Orman has launched a prepaid debit card that, if it becomes popular, could wind up costing credit unions significant amounts of money.
Orman has appeared widely for the NCUA on behalf of credit unions, highlighting the fact that money deposited in credit unions also carries federal insurance just as deposits in federally insured banks do. She has also often promoted credit unions as a consumer-friendly alternative to banks in her television programs carried on CNBC.
“Suze believes that if you are happy where you are, and you’ve got a good deal, you should stick with it,” the spokesman wrote via email. “She is supportive of credit unions and if someone is using a prepaid debit card from a credit union that they believe is working for them, then that’s great. Her primary concern is that many consumers are being taken advantage of by other card programs with hidden and exorbitant fees, and she wanted to offer people an alternative that would benefit them, and provide them great value.”
A bigger concern may be that, in addition to fee income, Orman's company makes debit interchange from the card.