AFIP CERTIFICATION EXAMINATION TEST
2026 FULL QUESTIONS AND SOLUTIONS
GRADED A+
⩥ UDAP. Answer: Unfair and Deceptive Acts and Practices
⩥ 3 elements of a contract. Answer: offer, acceptance, consideration
⩥ 2 ways to protect the finance source (involving insurance). Answer:
Force-place insurance, Accelerate the balance
⩥ Force-place insurance. Answer: Coverage premium is forced into the
car payment
⩥ Accelerate the balance. Answer: Make the full loan amount due &
payable
⩥ Right of Recission. Answer: ability for someone to terminate a
contract ("cooling off")
⩥ In a RISA who owns the vehicle?. Answer: The customer
,⩥ On a leased vehicle who owns the vehicle?. Answer: The lessor
⩥ Security Interest. Answer: A creditor's right to use collateral to recover
a debt.
⩥ Reg Z on TILA requires what 6 disclosures. 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.... 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
_____. Answer: Truth in Lending Act; Reg Z
⩥ When referring to the TILA box on the contract, what information is
disclosed for Payments?. 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:. Answer: Customer & selling
dealer
⩥ Deferred Down Payment - when dealing with a Hold Check, these 4
things must be followed:. 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:. 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. Answer: Gross & Net
⩥ Negative Equity - Gross Amt. method. Answer: - negative equity —->
addt'l amt. financed line
- down pmt. —> down pmt. line
⩥ Negative Equity - Net Amt. method. Answer: - negative equity —->
subtract cash down pmt. ... ttl goes on the addt'l amt. financed line
2026 FULL QUESTIONS AND SOLUTIONS
GRADED A+
⩥ UDAP. Answer: Unfair and Deceptive Acts and Practices
⩥ 3 elements of a contract. Answer: offer, acceptance, consideration
⩥ 2 ways to protect the finance source (involving insurance). Answer:
Force-place insurance, Accelerate the balance
⩥ Force-place insurance. Answer: Coverage premium is forced into the
car payment
⩥ Accelerate the balance. Answer: Make the full loan amount due &
payable
⩥ Right of Recission. Answer: ability for someone to terminate a
contract ("cooling off")
⩥ In a RISA who owns the vehicle?. Answer: The customer
,⩥ On a leased vehicle who owns the vehicle?. Answer: The lessor
⩥ Security Interest. Answer: A creditor's right to use collateral to recover
a debt.
⩥ Reg Z on TILA requires what 6 disclosures. 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.... 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
_____. Answer: Truth in Lending Act; Reg Z
⩥ When referring to the TILA box on the contract, what information is
disclosed for Payments?. 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:. Answer: Customer & selling
dealer
⩥ Deferred Down Payment - when dealing with a Hold Check, these 4
things must be followed:. 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:. 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. Answer: Gross & Net
⩥ Negative Equity - Gross Amt. method. Answer: - negative equity —->
addt'l amt. financed line
- down pmt. —> down pmt. line
⩥ Negative Equity - Net Amt. method. Answer: - negative equity —->
subtract cash down pmt. ... ttl goes on the addt'l amt. financed line
