THE EDCOMM GROUP UNCOVERS ERROR IN POSTED FLOOD INSURANCE COMPLIANCE PENALTY

(NEW YORK, NY) – March 10, 2006

The Edcomm Group has uncovered a critical error in the public information on the penalties for noncompliance with the Flood Disaster Protection Act of 1973.

As part of its ongoing commitment to accurate and current bank compliance training, The Edcomm Group discovered a discrepancy among the various government, regulatory agency and legal web sites. These sites were all inaccurately documenting the per-violation, and maximum yearly penalties allowed under the National Flood Insurance Reform Act. In performing due diligence to attempt to identify whose information was correct – the real answer revealed itself – none of them were correct!

In 1994, with the passage of the National Flood Insurance Reform Act, regulatory agencies were required to enforce civil money penalties of no more than $350 for each violation, and a total of $100,000 against a single institution in one year. This is what most sites listed as the current penalties with a few indicating $350 and $115,000.

However, as a result of the Federal Civil Penalties Inflation Adjustment Act of 1990 and the Debt Collection Improvement Act of 1996, agencies are required to adjust for inflation at least every four years. Therefore as of Fourth Quarter 2004, the correct monetary penalties for noncompliance are $385 per violation, and $125,000 total per year. This number has been confirmed by representatives of the OCC.

The Edcomm Group has had the privilege of assisting many distinguished clients with business solutions in the form of eLearning programs, classroom instruction, multimedia production and online and print based documentation. In addition to the development of customized programs, The Edcomm Group offers many banking specific off-the-shelf products such as Teller Training and Compliance Training that have proven themselves effective in organizations around the world.

The Edcomm Group is a 19-year-old multimedia education and communication consulting firm specializing in the development of creative business solutions that improve productivity, customer service and market share — providing bottom-line results. The Edcomm Group (www.edcomm.com), (www.bankersacademy.com) is headquartered in New York City with an Advanced Design Center located in Fort Washington, Pennsylvania.

For more information, please contact:

Linda Eagle
President, The Edcomm Group
1-888-4EDCOMM
linda.eagle@edcomm.com