Bank of America said Wednesday it will pay $783 million to resolve federal regulators’ claims that the Charlotte, N.C., bank misled customers in how it marketed and billed for credit card add-on products including identity theft protection.
The bank said it will reimburse $738 million to customers who were affected and will pay a total of $45 million in penalties to the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency.
The Consumer Financial Protection Bureau said the bank’s telemarketing pitches misled customers in several ways, including being unclear on when charges would begin. About 1.4 million customers were affected.
Exelis to share in $988 million contract
Exelis Inc.’s Fort Wayne operation is among four defense contractor locations chosen to fill a 10-year, $988 million firm, fixed-price order for SRW Appliqué Radio Systems to be used by brigade combat teams, the Defense Department announced Wednesday.
It’s unclear what percentage of the work will go to Exelis. The other companies are General Dynamics C4 Systems Inc., Harris Corp. and Thales Defense & Security Inc.
Army Contracting Command in Aberdeen, Md., issued the contract.
Minutes show Fed struggled on rates
The Federal Reserve struggled last month over how to convey to investors that it will raise short-term interest rates only slowly once it increases them from record lows.
Two weeks before the Fed’s regular meeting March 18 and 19, it held an unusual and previously unannounced video conference to debate the issue, according to minutes of the meeting released Wednesday.
In the end, the Fed settled on an open-ended approach: Short-term rates may need to stay unusually low for a while, even after employment and inflation are nearly back to normal, because the economy isn’t fully healthy.
Wholesale stockpiles increase 0.5 percent
U.S. wholesale businesses increased their stockpiles for an eighth consecutive month in February as their sales rose at the fastest clip since November.
Wholesale businesses boosted stockpiles by 0.5 percent in February following an 0.8 percent January increase, the Commerce Department said Wednesday.