Michelle Jun, senior attorney for Consumers Union, the policy and advocacy arm of the non-profit Consumer Reports group, says: "We need new rules that require fees to be disclosed in a simple format so consumers know the costs before they purchase a card. Pre-paid cards should get the same strong protections as debit cards so consumers have the peace of mind that their money is safe if their card is lost or stolen."

Consumers can typically only find information about a few of the fees charged by card issuers before they purchase a card at a store, he says. And, while some pre-paid card issuers are providing direct links to fee schedules on their Web sites, others make finding this information more difficult.

Consumer Reports examined 16 different pre-paid cards and found that issuers charged a variety of different fees to consumers, including card activation fees, monthly charges, cash withdrawal charges, fees for balance enquiries and statement reports, as well as card inactivity penalties. Fee levels varied wildly. Activation fees ranged from a low of $3 for the Walmart Money Card, nFinanSe card, and the Approved Card to $14.95 for some select RushCards. Some pre-paid card issuers like NetSpend and Western Union are no longer charging activation fees.

Consumer Reports is also pushing for FDIC protection for money held in pre-paid card accounts and a liability guarantee equivalent to that offered to debit card users who report lost or stolen cards.

Says Jun: "Now that so many households are relying on pre-paid cards to manage their finances, it's time for the Consumer Financial Protection Bureau to take action to protect consumers."