AFIP Basic Certification Actual Exam
Newest AFIP Basic Certification Exam
Preparation/AFIP Basic Certification
Practice Exam With Complete Questions And
Correct Answers| Brand New Version!
(True/False) The changes in dealership practices required by the adverse action
reporting rules mandated by the Fair Credit Reporting Act are the result of new
legislation enacted by Congress. - ANSWER>>False
The policy changes required in order to comply with the FCRA are effective: -
ANSWER>>Immediately
According to the FCRA, a dealer must issue an Adverse Action Notice if the
request for credit was denied based on: - ANSWER>>a. The information provided
by a credit reporting agency.
b. Information provided by a third party (e.g., an employer or landlord).
The adverse action reporting requirements for Notices issued in accordance with
the FCRA must contain: - ANSWER>>a. A statement that the adverse credit
decision was based in whole or in part on information obtained from a credit
reporting agency.
b. The contact information for the credit reporting agency that provided the
report.
c. A statement that the credit reporting agency did not make the decision.
,d. Notice of the consumer's right to obtain a free copy of his or her credit report
from the credit reporting agency, if requested within 60 days after receiving the
Notice.
e. Notice of the customer's right to dispute the accuracy or completeness of any
consumer report information with the credit reporting agency.
In the course of a transaction, a customer completes a credit application. Based
on negative information contained in the application, a decision is made by an
employee of the dealership to deny credit - without securing a credit report or
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.
d. Has no obligation to issue an Adverse Action Notice under the FCRA.
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
,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 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): Ignorance of the law will shield you from liability if you are
noncompliant. - ANSWER>>False
(True/False): As an F&I manager working directly with customers, you are
individually responsible for your actions and what you say to each customer. -
ANSWER>>True
In a typical credit transaction the (bank)/(dealer) is the creditor. - ANSWER>>The
dealer is the creditor
What is a contract? - ANSWER>>A contract is an agreement involving a promise or
set of promises that the law enforces or protects.
The formation of a contract requires three elements: - ANSWER>>1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - ANSWER>>1. An expression of a promise or
commitment (intent) to enter a contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this case, the customer)
Newest AFIP Basic Certification Exam
Preparation/AFIP Basic Certification
Practice Exam With Complete Questions And
Correct Answers| Brand New Version!
(True/False) The changes in dealership practices required by the adverse action
reporting rules mandated by the Fair Credit Reporting Act are the result of new
legislation enacted by Congress. - ANSWER>>False
The policy changes required in order to comply with the FCRA are effective: -
ANSWER>>Immediately
According to the FCRA, a dealer must issue an Adverse Action Notice if the
request for credit was denied based on: - ANSWER>>a. The information provided
by a credit reporting agency.
b. Information provided by a third party (e.g., an employer or landlord).
The adverse action reporting requirements for Notices issued in accordance with
the FCRA must contain: - ANSWER>>a. A statement that the adverse credit
decision was based in whole or in part on information obtained from a credit
reporting agency.
b. The contact information for the credit reporting agency that provided the
report.
c. A statement that the credit reporting agency did not make the decision.
,d. Notice of the consumer's right to obtain a free copy of his or her credit report
from the credit reporting agency, if requested within 60 days after receiving the
Notice.
e. Notice of the customer's right to dispute the accuracy or completeness of any
consumer report information with the credit reporting agency.
In the course of a transaction, a customer completes a credit application. Based
on negative information contained in the application, a decision is made by an
employee of the dealership to deny credit - without securing a credit report or
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.
d. Has no obligation to issue an Adverse Action Notice under the FCRA.
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
,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 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): Ignorance of the law will shield you from liability if you are
noncompliant. - ANSWER>>False
(True/False): As an F&I manager working directly with customers, you are
individually responsible for your actions and what you say to each customer. -
ANSWER>>True
In a typical credit transaction the (bank)/(dealer) is the creditor. - ANSWER>>The
dealer is the creditor
What is a contract? - ANSWER>>A contract is an agreement involving a promise or
set of promises that the law enforces or protects.
The formation of a contract requires three elements: - ANSWER>>1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - ANSWER>>1. An expression of a promise or
commitment (intent) to enter a contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this case, the customer)
