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AFIP Certification Actual Exam Newest 2025-2026 AFIP
Certification Exam Preparation/AFIP Certification Practice
Exam With Complete Questions And Correct Answers|
Brand New Version!
In the course of a transaction, a customer completes a credit application
and the dealer secures a credit report. Based on negative information
contained in the credit report, a decision is made by an employee of the
dealership to deny credit - without sending the deal to a funding source
for approval. The dealer: - ANSWER-a. Has an obligation to issue an
Adverse Action Notice as required by the ECOA.
c. Has an obligation to issue an Adverse Action Notice as required by the
FCRA.
(True/False) In negotiating the in-store funding arrangements, the
customer will accept the deal if he only has to tender $1,000 as a
downpayment. Based on the information contained in the customer's
credit report and the parameters of the deal, a funding source will only
approve the transaction with a $3,000 downpayment - which the
customer will not agree to. Because the funding source approved the
deal with only a slight alteration in the terms, the dealer is not required
to issue an Adverse Action Notice. - ANSWER-False
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A customer completes a credit application and the dealer secures a credit
report. Due to the low credit score, the F&I person makes a maximum
effort to find a lender willing to accept the deal. The deal is shopped
with five primary lending sources and three secondary lenders. All eight
deny the request for credit. In this case, the dealer has an obligation to
the customer to _____________. - ANSWER-The dealer has an
obligation to issue a Notice.
A funding source will approve the deal based on specific changes in the
terms originally submitted. If the customer agrees to the conditions of
the counteroffer, the dealer: - ANSWER-Does not need to issue an
Adverse Action Notice.
The F&I person is in possession of a credit application that is missing
information, without which the application cannot be sent for review. In
this case, the F&I practitioner can: - ANSWER-Either:
a. Send the customer a written Adverse Action Notice within 30 days.
b. Send the customer a written Notice of Incompleteness, noting the
items needed to complete the application, establishing a reasonable time
to respond, and stating that the application will not be processed unless
the requested information is provided.
The customer is purchasing a vehicle for use in his business, and
corporate credit information is used to complete the credit application. In
this case, the F&I practitioner, in accordance with the ECOA, must ask
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and record: - ANSWER-Whether the business posts a gross annual
income of $1 million or less
Based on the customer's credit history, the request for credit is denied by
all the funding sources who reviewed the deal and no counteroffer was
made. In this case, the dealer issued a simplified Adverse Action Notice.
Ninety days after receipt of the notice, the customer makes a written
request for an explanation as to why credit was denied. The dealer: -
ANSWER-Has no obligation to comply with the request, although a
business decision might be made to honor it.
(True/False) According to the FCRA, a customer can bring a claim under
the Act seven years after the date on which the alleged violation
occurred. - ANSWER-False
The ECOA requires that specific documents be retained for: -
ANSWER-25 months from the date of the application.
(True/False) A copy of the credit report used to evaluate the customer's
credit should be included in the documents that are kept on file to
comply with the ECOA. - ANSWER-True
(True/False) Under the ECOA, the Adverse Action Notice must include
the specific reason credit was denied - such as the applicant's delinquent
credit obligations - or disclose the applicant's right to a specific
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statement of the reasons if requested within 60 days of the Adverse
Action Notice. - ANSWER-True
(True/False) A creditor must provide the consumer with an Adverse
Action Notice any time the creditor denies credit, or refuses to grant
credit in substantially the amount or the terms requested by the
consumer. - ANSWER-True
(True/False) Under the FCRA, an Adverse Action Notice must include
the name, address, and telephone number of the credit reporting agency
that furnished the report, along with a statement that the credit reporting
agency was responsible for making the decision to take adverse action,
and that the consumer can contact the agency to find out the specific
reasons for the decisions. - ANSWER-False
Violations of the ECOA can subject dealerships to liability for: -
ANSWER-a. Actual damages suffered by consumers.
b. Punitive damages up to $10,000 in an individual action.
c. Punitive damages up to $500,000, or up to 1% of the dealership's net
worth, whichever is less, in class actions.
Willful violations of the FCRA can expose dealerships to liability for: -
ANSWER-a. Actual damages suffered by consumers.
AFIP Certification Actual Exam Newest 2025-2026 AFIP
Certification Exam Preparation/AFIP Certification Practice
Exam With Complete Questions And Correct Answers|
Brand New Version!
In the course of a transaction, a customer completes a credit application
and the dealer secures a credit report. Based on negative information
contained in the credit report, a decision is made by an employee of the
dealership to deny credit - without sending the deal to a funding source
for approval. The dealer: - ANSWER-a. Has an obligation to issue an
Adverse Action Notice as required by the ECOA.
c. Has an obligation to issue an Adverse Action Notice as required by the
FCRA.
(True/False) In negotiating the in-store funding arrangements, the
customer will accept the deal if he only has to tender $1,000 as a
downpayment. Based on the information contained in the customer's
credit report and the parameters of the deal, a funding source will only
approve the transaction with a $3,000 downpayment - which the
customer will not agree to. Because the funding source approved the
deal with only a slight alteration in the terms, the dealer is not required
to issue an Adverse Action Notice. - ANSWER-False
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A customer completes a credit application and the dealer secures a credit
report. Due to the low credit score, the F&I person makes a maximum
effort to find a lender willing to accept the deal. The deal is shopped
with five primary lending sources and three secondary lenders. All eight
deny the request for credit. In this case, the dealer has an obligation to
the customer to _____________. - ANSWER-The dealer has an
obligation to issue a Notice.
A funding source will approve the deal based on specific changes in the
terms originally submitted. If the customer agrees to the conditions of
the counteroffer, the dealer: - ANSWER-Does not need to issue an
Adverse Action Notice.
The F&I person is in possession of a credit application that is missing
information, without which the application cannot be sent for review. In
this case, the F&I practitioner can: - ANSWER-Either:
a. Send the customer a written Adverse Action Notice within 30 days.
b. Send the customer a written Notice of Incompleteness, noting the
items needed to complete the application, establishing a reasonable time
to respond, and stating that the application will not be processed unless
the requested information is provided.
The customer is purchasing a vehicle for use in his business, and
corporate credit information is used to complete the credit application. In
this case, the F&I practitioner, in accordance with the ECOA, must ask
,3|Page
and record: - ANSWER-Whether the business posts a gross annual
income of $1 million or less
Based on the customer's credit history, the request for credit is denied by
all the funding sources who reviewed the deal and no counteroffer was
made. In this case, the dealer issued a simplified Adverse Action Notice.
Ninety days after receipt of the notice, the customer makes a written
request for an explanation as to why credit was denied. The dealer: -
ANSWER-Has no obligation to comply with the request, although a
business decision might be made to honor it.
(True/False) According to the FCRA, a customer can bring a claim under
the Act seven years after the date on which the alleged violation
occurred. - ANSWER-False
The ECOA requires that specific documents be retained for: -
ANSWER-25 months from the date of the application.
(True/False) A copy of the credit report used to evaluate the customer's
credit should be included in the documents that are kept on file to
comply with the ECOA. - ANSWER-True
(True/False) Under the ECOA, the Adverse Action Notice must include
the specific reason credit was denied - such as the applicant's delinquent
credit obligations - or disclose the applicant's right to a specific
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statement of the reasons if requested within 60 days of the Adverse
Action Notice. - ANSWER-True
(True/False) A creditor must provide the consumer with an Adverse
Action Notice any time the creditor denies credit, or refuses to grant
credit in substantially the amount or the terms requested by the
consumer. - ANSWER-True
(True/False) Under the FCRA, an Adverse Action Notice must include
the name, address, and telephone number of the credit reporting agency
that furnished the report, along with a statement that the credit reporting
agency was responsible for making the decision to take adverse action,
and that the consumer can contact the agency to find out the specific
reasons for the decisions. - ANSWER-False
Violations of the ECOA can subject dealerships to liability for: -
ANSWER-a. Actual damages suffered by consumers.
b. Punitive damages up to $10,000 in an individual action.
c. Punitive damages up to $500,000, or up to 1% of the dealership's net
worth, whichever is less, in class actions.
Willful violations of the FCRA can expose dealerships to liability for: -
ANSWER-a. Actual damages suffered by consumers.
