AFIP Certification Exam – Questions With Fully
Detailed Solutions
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Terms in this set (119)
FTC fine amount $46,517
UDAP Unfair and Deceptive Acts and Practices
3 elements of a contract offer, acceptance, consideration
2 ways to protect the Force-place insurance, Accelerate the balance
finance source (involving
insurance)
Force-place insurance Coverage premium is forced into the car payment
Accelerate the balance Make the full loan amount due & payable
ability for someone to terminate a contract ("cooling
Right of Recission
off")
In a RISA who owns the The customer
vehicle?
On a leased vehicle who The lessor
owns the vehicle?
Security Interest A creditor's right to use collateral to recover a debt.
1) APR
2) Finance Charge
Reg Z on TILA requires 3) Amount Financed
what 6 disclosures 4) Total Payments
5) Total Sales Price
6) Payment Schedule
, 1) Total number of cash payments
Total Sales Price on RISA
2) Cash Down
includes...
3) Net trade-in
TILA stands for __________, Truth in Lending Act; Reg Z
and the Reg associated
with it is Reg _____
When referring to the TILA The # of payments, the amount of each payment, and
box on the contract, what the due date
information is disclosed
for Payments?
Disclosing the Contract - Customer & selling dealer
state specific - at the time
of consummation, the
contract is between these
2 parties:
- payment must be processed before the 2nd
Deferred Down Payment -
scheduled monthly payment
when dealing with a Hold
- amount cannot be included in Amt. Financed
Check, these 4 things must
- not subjected to a finance charge
be followed:
- not recorded on the contract (except in California**)
Negative Equity - two - increase the value of vehicle to bury negative equity
things you cannot do: - record a negative amount on the Down Payment line
2 types of Negative Equity Gross & Net
methods
Negative Equity - Gross - negative equity —-> addt'l amt. financed line
Amt. method - down pmt. —> down pmt. line
- negative equity —-> subtract cash down pmt. ... ttl
goes on the addt'l amt. financed line
Negative Equity - Net Amt. - down pmt. gets absorbed, so $0 goes on down pmt.
method line - ***** OR if the down pmt. is more than the
negative equity, the total amt. (equity minus cash)
goes on the down pmt. line
Detailed Solutions
Save
Terms in this set (119)
FTC fine amount $46,517
UDAP Unfair and Deceptive Acts and Practices
3 elements of a contract offer, acceptance, consideration
2 ways to protect the Force-place insurance, Accelerate the balance
finance source (involving
insurance)
Force-place insurance Coverage premium is forced into the car payment
Accelerate the balance Make the full loan amount due & payable
ability for someone to terminate a contract ("cooling
Right of Recission
off")
In a RISA who owns the The customer
vehicle?
On a leased vehicle who The lessor
owns the vehicle?
Security Interest A creditor's right to use collateral to recover a debt.
1) APR
2) Finance Charge
Reg Z on TILA requires 3) Amount Financed
what 6 disclosures 4) Total Payments
5) Total Sales Price
6) Payment Schedule
, 1) Total number of cash payments
Total Sales Price on RISA
2) Cash Down
includes...
3) Net trade-in
TILA stands for __________, Truth in Lending Act; Reg Z
and the Reg associated
with it is Reg _____
When referring to the TILA The # of payments, the amount of each payment, and
box on the contract, what the due date
information is disclosed
for Payments?
Disclosing the Contract - Customer & selling dealer
state specific - at the time
of consummation, the
contract is between these
2 parties:
- payment must be processed before the 2nd
Deferred Down Payment -
scheduled monthly payment
when dealing with a Hold
- amount cannot be included in Amt. Financed
Check, these 4 things must
- not subjected to a finance charge
be followed:
- not recorded on the contract (except in California**)
Negative Equity - two - increase the value of vehicle to bury negative equity
things you cannot do: - record a negative amount on the Down Payment line
2 types of Negative Equity Gross & Net
methods
Negative Equity - Gross - negative equity —-> addt'l amt. financed line
Amt. method - down pmt. —> down pmt. line
- negative equity —-> subtract cash down pmt. ... ttl
goes on the addt'l amt. financed line
Negative Equity - Net Amt. - down pmt. gets absorbed, so $0 goes on down pmt.
method line - ***** OR if the down pmt. is more than the
negative equity, the total amt. (equity minus cash)
goes on the down pmt. line
