Providence Place mall owner General Growth Properties Inc. has coupled with American Express in the nationwide launch of gift cards with only an initial purchase charge and no expiration date, just in time for the 2009 holiday shopping season.

Ever since Rhode Island changed its law in 2005, the mall has sold no-fee cards that don’t expire. Now, the federal government is catching up with state law.

General Growth’s national offering comes as new federal rules on gift cards are set to go into effect in 2010. The Credit CARD Act of 2009 prohibits gift cards (store-issued or bank-issued gift cards) from expiring before five years from the date of purchase or when money was last loaded onto a card, and prohibits fees for the first 12 months.

Sales of gift cards grew to record proportions earlier in the decade reaching $80 billion by 2006, according to one research study. In 2007, consumers spent nearly $28 billion on gift cards just during the end-of-the-year holiday period.

As sales grew, so did consumer complaints. People complained about expiration dates, inactivity fees, other unexpected charges and restrictions. The fees and the value of unused gift cards became a major source of revenue for companies.

Mall owners were among the companies hit with consumer lawsuits that led to stricter laws governing fees, as well as self-imposed changes by retailers and others who sell the cards. Previously, American Express gift cards usually carried a fee of $2 one year after the issuance of the card.

In 2004, Massachusetts, Connecticut and other states sued General Growth rival Simon Property Group, alleging that the gift cards sold by the nation’s largest mall owner violated consumer-protection laws.

While the results of those cases diverged, the federal agency that regulates banks was compelled in 2006 to issue guidelines.

pgrimald@projo.com