AFIP Certification || 100% Correct Answers.
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
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 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
Negative Equity - Net Amt. method correct answers - 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? correct answers Oversee Franchise
New
What does CFPB regulate? correct answers - buy here pay here
- used independent dealers
- lease here pay here
- finance sources
Who oversees UDAP? correct answers FTC
Who oversees UDAAP? correct answers CFPB
Two situation for UDAP and UDAAP violations correct answers - treating customer unethically
- providing incorrect or mis-leading information
First-Pencil Payment Quote correct answers - Store's running average from last 60-90 days, new
& used, does not include promotional factors
- "based on our store's average"
- "could be higher or lower depending on your credit worthiness"
Advertising: what's NOT considered an ad? (3 items) correct answers - verbal or written
interaction w/ one individual regarding a specific transaction
- face-to-face interaction
- follow ups with an individual
If an advertisement doesn't follow the guidelines, ______ can hit you with a _______, which will
come with a fine up to $_______ per _____, per __________. correct answers FTC; UDAP;
$46,517 per day, per violation
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
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 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
Negative Equity - Net Amt. method correct answers - 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? correct answers Oversee Franchise
New
What does CFPB regulate? correct answers - buy here pay here
- used independent dealers
- lease here pay here
- finance sources
Who oversees UDAP? correct answers FTC
Who oversees UDAAP? correct answers CFPB
Two situation for UDAP and UDAAP violations correct answers - treating customer unethically
- providing incorrect or mis-leading information
First-Pencil Payment Quote correct answers - Store's running average from last 60-90 days, new
& used, does not include promotional factors
- "based on our store's average"
- "could be higher or lower depending on your credit worthiness"
Advertising: what's NOT considered an ad? (3 items) correct answers - verbal or written
interaction w/ one individual regarding a specific transaction
- face-to-face interaction
- follow ups with an individual
If an advertisement doesn't follow the guidelines, ______ can hit you with a _______, which will
come with a fine up to $_______ per _____, per __________. correct answers FTC; UDAP;
$46,517 per day, per violation
