AFIP Certification
FTC fine amount - Answer-$46,517
UDAP - Answer-Unfair and Deceptive Acts and Practices
3 elements of a contract - Answer-offer, acceptance, consideration
2 ways to protect the finance source (involving insurance) - Answer-Force-place insurance, Accelerate
the balance
Force-place insurance - Answer-Coverage premium is forced into the car payment
Accelerate the balance - Answer-Make the full loan amount due & payable
Right of Recission - Answer-ability for someone to terminate a contract ("cooling off")
In a RISA who owns the vehicle? - Answer-The customer
On a leased vehicle who owns the vehicle? - Answer-The lessor
,Security Interest - Answer-A creditor's right to use collateral to recover a debt.
Reg Z on TILA requires what 6 disclosures - Answer-1) APR
2) Finance Charge
3) Amount Financed
4) Total Payments
5) Total Sales Price
6) Payment Schedule
Total Sales Price on RISA includes... - Answer-1) Total number of cash payments
2) Cash Down
3) Net trade-in
TILA stands for __________, and the Reg associated with it is Reg _____ - Answer-Truth in Lending Act;
Reg Z
When referring to the TILA box on the contract, what information is disclosed for Payments? - Answer-
The # of payments, the amount of each payment, and the due date
Disclosing the Contract - state specific - at the time of consummation, the contract is between these 2
parties: - Answer-Customer & selling dealer
Deferred Down Payment - when dealing with a Hold Check, these 4 things must be followed: - Answer--
payment must be processed before the 2nd scheduled monthly payment
- amount cannot be included in Amt. Financed
- not subjected to a finance charge
- not recorded on the contract (except in California**)
, Negative Equity - two things you cannot do: - Answer-- increase the value of vehicle to bury negative
equity
- record a negative amount on the Down Payment line
2 types of Negative Equity methods - Answer-Gross & Net
Negative Equity - Gross Amt. method - Answer-- negative equity —-> addt'l amt. financed line
- down pmt. —> down pmt. line
Negative Equity - Net Amt. method - Answer-- negative equity —-> subtract cash down pmt. ... ttl goes
on the addt'l amt. financed line
- down pmt. gets absorbed, so $0 goes on down pmt. line - ***** OR if the down pmt. is more than the
negative equity, the total amt. (equity minus cash) goes on the down pmt. line
What does FTC stand for and what was its responsibility? - Answer-Oversee Franchise New
What does CFPB regulate? - Answer-- buy here pay here
- used independent dealers
- lease here pay here
- finance sources
Who oversees UDAP? - Answer-FTC
Who oversees UDAAP? - Answer-CFPB
Two situation for UDAP and UDAAP violations - Answer-- treating customer unethically
FTC fine amount - Answer-$46,517
UDAP - Answer-Unfair and Deceptive Acts and Practices
3 elements of a contract - Answer-offer, acceptance, consideration
2 ways to protect the finance source (involving insurance) - Answer-Force-place insurance, Accelerate
the balance
Force-place insurance - Answer-Coverage premium is forced into the car payment
Accelerate the balance - Answer-Make the full loan amount due & payable
Right of Recission - Answer-ability for someone to terminate a contract ("cooling off")
In a RISA who owns the vehicle? - Answer-The customer
On a leased vehicle who owns the vehicle? - Answer-The lessor
,Security Interest - Answer-A creditor's right to use collateral to recover a debt.
Reg Z on TILA requires what 6 disclosures - Answer-1) APR
2) Finance Charge
3) Amount Financed
4) Total Payments
5) Total Sales Price
6) Payment Schedule
Total Sales Price on RISA includes... - Answer-1) Total number of cash payments
2) Cash Down
3) Net trade-in
TILA stands for __________, and the Reg associated with it is Reg _____ - Answer-Truth in Lending Act;
Reg Z
When referring to the TILA box on the contract, what information is disclosed for Payments? - Answer-
The # of payments, the amount of each payment, and the due date
Disclosing the Contract - state specific - at the time of consummation, the contract is between these 2
parties: - Answer-Customer & selling dealer
Deferred Down Payment - when dealing with a Hold Check, these 4 things must be followed: - Answer--
payment must be processed before the 2nd scheduled monthly payment
- amount cannot be included in Amt. Financed
- not subjected to a finance charge
- not recorded on the contract (except in California**)
, Negative Equity - two things you cannot do: - Answer-- increase the value of vehicle to bury negative
equity
- record a negative amount on the Down Payment line
2 types of Negative Equity methods - Answer-Gross & Net
Negative Equity - Gross Amt. method - Answer-- negative equity —-> addt'l amt. financed line
- down pmt. —> down pmt. line
Negative Equity - Net Amt. method - Answer-- negative equity —-> subtract cash down pmt. ... ttl goes
on the addt'l amt. financed line
- down pmt. gets absorbed, so $0 goes on down pmt. line - ***** OR if the down pmt. is more than the
negative equity, the total amt. (equity minus cash) goes on the down pmt. line
What does FTC stand for and what was its responsibility? - Answer-Oversee Franchise New
What does CFPB regulate? - Answer-- buy here pay here
- used independent dealers
- lease here pay here
- finance sources
Who oversees UDAP? - Answer-FTC
Who oversees UDAAP? - Answer-CFPB
Two situation for UDAP and UDAAP violations - Answer-- treating customer unethically
