AFIP - Basic Certification Course questions with
verfied answers
(True/False)
A dealer issued 10 installment sale contracts with an incorrect APR due
to a programming error. The deviations were so small that only the
lender identified them. The dealer could use the "bona fide error
defense" in a civil lawsuit. Ans✓✓✓ True
(True/False)
A potential fine of up to $43,792 per day / per violation - if the cease
and desist order is ignored - plus potential UDAP action at the state
level. Ans✓✓✓ True
(True/False)
A principal purpose of TILA is to promote the informed use of customer
credit by requiring disclosures about its terms and cost. Ans✓✓✓ True
(True/False)
,A situation exists that requires the customer to be re-contracted and
sign a new Retail Installment Sale Agreement five days after
consummating the deal.
If the reconstruct period is less than seven business days, the date
recorded on the initial installment sale agreement can be used for the
second agreement. Ans✓✓✓ False
(True/False)
A violation of the advertising rules may result in a cease and desist
order. Ans✓✓✓ True
(True/False)
According to Reg M, the APR must be disclosed. Ans✓✓✓ False
(True/False)
According to Reg. M, early termination information has to be disclosed.
Ans✓✓✓ True
(True/False)
,According to Reg. Z, it is necessary to disclose APR and the Finance
Charge. Ans✓✓✓ True
(True/False)
According to Regulation Z, down payment and total sale price must be
disclosed. Ans✓✓✓ True
(True/False)
All of the following items are triggering terms on an advertisement for
an installment sale:
A. The number or percentage of any down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge Ans✓✓✓ True
(True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure
box items:
, A. The amount financed
B. The total of the payments
C. The dollar or percentage charged due to a late payment
D. The cost of an oil change
E. The payment schedule - the number, amounts, and timing of
payments Ans✓✓✓ False. D. The cost of an oil change is not included.
(True/False)
Any communication to a single individual - verbally or in writing does
not meet standards for an advertisement. Ans✓✓✓ True
(True/False)
CLA is implemented by Regulation M? Ans✓✓✓ True
(True/False)
CLA/Reg. M governs consumer lease transactions. Consumer
transactions are those in which vehicles will be used primarily (51
percent of the time) for household, personal, and family purposes.
Ans✓✓✓ True
verfied answers
(True/False)
A dealer issued 10 installment sale contracts with an incorrect APR due
to a programming error. The deviations were so small that only the
lender identified them. The dealer could use the "bona fide error
defense" in a civil lawsuit. Ans✓✓✓ True
(True/False)
A potential fine of up to $43,792 per day / per violation - if the cease
and desist order is ignored - plus potential UDAP action at the state
level. Ans✓✓✓ True
(True/False)
A principal purpose of TILA is to promote the informed use of customer
credit by requiring disclosures about its terms and cost. Ans✓✓✓ True
(True/False)
,A situation exists that requires the customer to be re-contracted and
sign a new Retail Installment Sale Agreement five days after
consummating the deal.
If the reconstruct period is less than seven business days, the date
recorded on the initial installment sale agreement can be used for the
second agreement. Ans✓✓✓ False
(True/False)
A violation of the advertising rules may result in a cease and desist
order. Ans✓✓✓ True
(True/False)
According to Reg M, the APR must be disclosed. Ans✓✓✓ False
(True/False)
According to Reg. M, early termination information has to be disclosed.
Ans✓✓✓ True
(True/False)
,According to Reg. Z, it is necessary to disclose APR and the Finance
Charge. Ans✓✓✓ True
(True/False)
According to Regulation Z, down payment and total sale price must be
disclosed. Ans✓✓✓ True
(True/False)
All of the following items are triggering terms on an advertisement for
an installment sale:
A. The number or percentage of any down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge Ans✓✓✓ True
(True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure
box items:
, A. The amount financed
B. The total of the payments
C. The dollar or percentage charged due to a late payment
D. The cost of an oil change
E. The payment schedule - the number, amounts, and timing of
payments Ans✓✓✓ False. D. The cost of an oil change is not included.
(True/False)
Any communication to a single individual - verbally or in writing does
not meet standards for an advertisement. Ans✓✓✓ True
(True/False)
CLA is implemented by Regulation M? Ans✓✓✓ True
(True/False)
CLA/Reg. M governs consumer lease transactions. Consumer
transactions are those in which vehicles will be used primarily (51
percent of the time) for household, personal, and family purposes.
Ans✓✓✓ True
