AFIP Certification Exam Questions and Answers (Most
Recent Version, Complete Study Material)
FTC fine amount - Correct Answers ✅$46,517
UDAP - Correct Answers ✅Unfair and Deceptive Acts and
Practices
3 elements of a contract - Correct Answers ✅offer,
acceptance, consideration
2 ways to protect the finance source (involving insurance) -
Correct Answers ✅Force-place insurance, Accelerate the
balance
Force-place insurance - Correct Answers ✅Coverage
premium is forced into the car payment
Accelerate the balance - Correct Answers ✅Make the full
loan amount due & payable
Right of Recission - Correct Answers ✅ability for someone
to terminate a contract ("cooling off")
In a RISA who owns the vehicle? - Correct Answers ✅The
customer
,AFIP Certification Exam Questions and Answers (Most
Recent Version, Complete Study Material)
On a leased vehicle who owns the vehicle? - Correct
Answers ✅The lessor
Security Interest - Correct Answers ✅A creditor's right to
use collateral to recover a debt.
Reg Z on TILA requires what 6 disclosures - Correct
Answers ✅1) APR
2) Finance Charge
3) Amount Financed
4) Total Payments
5) Total Sales Price
6) Payment Schedule
Total Sales Price on RISA includes... - Correct Answers ✅1)
Total number of cash payments
2) Cash Down
3) Net trade-in
TILA stands for __________, and the Reg associated with it is
Reg _____ - Correct Answers ✅Truth in Lending Act; Reg Z
When referring to the TILA box on the contract, what
information is disclosed for Payments? - Correct Answers
, AFIP Certification Exam Questions and Answers (Most
Recent Version, Complete Study Material)
✅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: -
Correct Answers ✅Customer & selling dealer
Deferred Down Payment - when dealing with a Hold Check,
these 4 things must be followed: - Correct Answers ✅-
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: - Correct
Answers ✅- increase the value of vehicle to bury negative
equity
- record a negative amount on the Down Payment line
2 types of Negative Equity methods - Correct Answers
✅Gross & Net
Negative Equity - Gross Amt. method - Correct Answers ✅-
negative equity —-> addt'l amt. financed line
- down pmt. —> down pmt. line
Recent Version, Complete Study Material)
FTC fine amount - Correct Answers ✅$46,517
UDAP - Correct Answers ✅Unfair and Deceptive Acts and
Practices
3 elements of a contract - Correct Answers ✅offer,
acceptance, consideration
2 ways to protect the finance source (involving insurance) -
Correct Answers ✅Force-place insurance, Accelerate the
balance
Force-place insurance - Correct Answers ✅Coverage
premium is forced into the car payment
Accelerate the balance - Correct Answers ✅Make the full
loan amount due & payable
Right of Recission - Correct Answers ✅ability for someone
to terminate a contract ("cooling off")
In a RISA who owns the vehicle? - Correct Answers ✅The
customer
,AFIP Certification Exam Questions and Answers (Most
Recent Version, Complete Study Material)
On a leased vehicle who owns the vehicle? - Correct
Answers ✅The lessor
Security Interest - Correct Answers ✅A creditor's right to
use collateral to recover a debt.
Reg Z on TILA requires what 6 disclosures - Correct
Answers ✅1) APR
2) Finance Charge
3) Amount Financed
4) Total Payments
5) Total Sales Price
6) Payment Schedule
Total Sales Price on RISA includes... - Correct Answers ✅1)
Total number of cash payments
2) Cash Down
3) Net trade-in
TILA stands for __________, and the Reg associated with it is
Reg _____ - Correct Answers ✅Truth in Lending Act; Reg Z
When referring to the TILA box on the contract, what
information is disclosed for Payments? - Correct Answers
, AFIP Certification Exam Questions and Answers (Most
Recent Version, Complete Study Material)
✅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: -
Correct Answers ✅Customer & selling dealer
Deferred Down Payment - when dealing with a Hold Check,
these 4 things must be followed: - Correct Answers ✅-
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: - Correct
Answers ✅- increase the value of vehicle to bury negative
equity
- record a negative amount on the Down Payment line
2 types of Negative Equity methods - Correct Answers
✅Gross & Net
Negative Equity - Gross Amt. method - Correct Answers ✅-
negative equity —-> addt'l amt. financed line
- down pmt. —> down pmt. line
