Senator MarkWarner (D-Va.) Thursday proposed legislation that would mandate more detailed fee disclosuresfor prepaid debit cards.

Citing the reported large numbers of prepaid debitcards which were used to make purchases during the holidayseason or were gifts themselves, Warner argued when introducing thePrepaid Card Disclosure Act of 2014 that the cards' explosivegrowth demanded greater consumer protections.

“Greater transparency of fees in a consistent way will empowerconsumers to make more informed decisions before purchasing orusing one of these prepaid products,” Warner, a majority partymember of the Senate Banking Committee, said. “These reloadablecards are popular as gifts, and many parents send their childrenoff to college with them. As they become more prevalent in oureconomy, it just makes sense that consumers should have access tothe same information that we require with gift cards and most majorcredit cards.”

Warner cited the confusion which can exist because prepaid cardsappear very much like standard credit cards, in that they carry thelogos of the major card brands but they often don't carry the sameconsumer protections. And, the cards usually have a whole differentset of fees, he said.

The legislative announcement was critical of issuers that imposeactivation fees, and many include monthly maintenance fees, too.Other issuers charge consumers 75 cents for checking the accountbalance, $1.75 to make a withdrawal, and as much as $5 per monthfor an inactivity fee. Some issuers, Warner noted, even chargeoverdraft fees of up to $25.

The bill would mandate the Consumer Finance Protection Bureaupromulgate rules for standard disclosures of prepaid card fees thatwould include an easily understood table, clearly and conspicuouslydisplayed to the consumer prior to purchase, describing the amountand description of each fee that may be charged.

The bill also allows disclosure through a QR code or barcode,which would allow consumers to get real-time fee updates via theirsmart phone, and would require a toll-free telephone number andwebsite to be clearly indicated on the card where consumers couldobtain further fee information.

A list of additional Senate sponsors has not yet beenrelease.