AFIP CERTIFICATION EXAM
QUESTIONS & VERIFIED COMPLETE
SOLUTIONS PASSED 100%
FTC fine amount - Correct Answer ✔✔ $46,517
UDAP - Correct Answer ✔✔ Unfair and Deceptive Acts and Practices
3 elements of a contract - Correct Answer ✔✔ offer, acceptance, consideration
2 ways to protect the finance source (involving insurance) - Correct Answer ✔✔ Force-
place insurance, Accelerate the balance
Force-place insurance - Correct Answer ✔✔ Coverage premium is forced into the car
payment
Accelerate the balance - Correct Answer ✔✔ Make the full loan amount due & payable
Right of Recission - Correct Answer ✔✔ ability for someone to terminate a contract
("cooling off")
In a RISA who owns the vehicle? - Correct Answer ✔✔ The customer
On a leased vehicle who owns the vehicle? - Correct Answer ✔✔ The lessor
Security Interest - Correct Answer ✔✔ A creditor's right to use collateral to recover a
debt.
Reg Z on TILA requires what 6 disclosures - Correct Answer ✔✔ 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 Answer ✔✔ 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
Answer ✔✔ Truth in Lending Act; Reg Z
, When referring to the TILA box on the contract, what information is disclosed for
Payments? - Correct Answer ✔✔ 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 Answer ✔✔ Customer & selling dealer
Deferred Down Payment - when dealing with a Hold Check, these 4 things must be
followed: - Correct Answer ✔✔ - 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 Answer ✔✔ - 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 Answer ✔✔ Gross & Net
Negative Equity - Gross Amt. method - Correct Answer ✔✔ - negative equity —-> addt'l
amt. financed line
- down pmt. —> down pmt. line
Negative Equity - Net Amt. method - Correct Answer ✔✔ - 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 Answer ✔✔
Oversee Franchise New
What does CFPB regulate? - Correct Answer ✔✔ - buy here pay here
- used independent dealers
- lease here pay here
- finance sources
Who oversees UDAP? - Correct Answer ✔✔ FTC
Who oversees UDAAP? - Correct Answer ✔✔ CFPB
Two situation for UDAP and UDAAP violations - Correct Answer ✔✔ - treating customer
unethically
- providing incorrect or mis-leading information
QUESTIONS & VERIFIED COMPLETE
SOLUTIONS PASSED 100%
FTC fine amount - Correct Answer ✔✔ $46,517
UDAP - Correct Answer ✔✔ Unfair and Deceptive Acts and Practices
3 elements of a contract - Correct Answer ✔✔ offer, acceptance, consideration
2 ways to protect the finance source (involving insurance) - Correct Answer ✔✔ Force-
place insurance, Accelerate the balance
Force-place insurance - Correct Answer ✔✔ Coverage premium is forced into the car
payment
Accelerate the balance - Correct Answer ✔✔ Make the full loan amount due & payable
Right of Recission - Correct Answer ✔✔ ability for someone to terminate a contract
("cooling off")
In a RISA who owns the vehicle? - Correct Answer ✔✔ The customer
On a leased vehicle who owns the vehicle? - Correct Answer ✔✔ The lessor
Security Interest - Correct Answer ✔✔ A creditor's right to use collateral to recover a
debt.
Reg Z on TILA requires what 6 disclosures - Correct Answer ✔✔ 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 Answer ✔✔ 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
Answer ✔✔ Truth in Lending Act; Reg Z
, When referring to the TILA box on the contract, what information is disclosed for
Payments? - Correct Answer ✔✔ 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 Answer ✔✔ Customer & selling dealer
Deferred Down Payment - when dealing with a Hold Check, these 4 things must be
followed: - Correct Answer ✔✔ - 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 Answer ✔✔ - 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 Answer ✔✔ Gross & Net
Negative Equity - Gross Amt. method - Correct Answer ✔✔ - negative equity —-> addt'l
amt. financed line
- down pmt. —> down pmt. line
Negative Equity - Net Amt. method - Correct Answer ✔✔ - 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 Answer ✔✔
Oversee Franchise New
What does CFPB regulate? - Correct Answer ✔✔ - buy here pay here
- used independent dealers
- lease here pay here
- finance sources
Who oversees UDAP? - Correct Answer ✔✔ FTC
Who oversees UDAAP? - Correct Answer ✔✔ CFPB
Two situation for UDAP and UDAAP violations - Correct Answer ✔✔ - treating customer
unethically
- providing incorrect or mis-leading information
