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AFIP Certification Exam Practice
Questions with Verified Answers | Latest
2025/2026 Update.
What does UDAP stand for? - (answers)Unfair, Deceptive Acts or Practices
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter? - (answers)Attorney General
If we treat consumers fairly and ethically, then there is ______________ on the
government to enact legislation and write additional rules. - (answers)Less
Pressure
Which organizations in our industry does the Federal Trade Commission (FTC)
oversee? - (answers)Franchise New Dealers
What does UDAAP stand for? - (answers)Unfair, Deceptive Abusive Acts or
Practices
Which organizations in our industry does the Consumer Financial Protection
Bureau (CFPB) oversee? - (answers)Independent Used Dealers
Buy Here Pay Here (BHPH)
Lease Here Pay Here (LHPH)
Finance Sources
,2
When it comes to a RISC and a lease, the financial institution has a lien on the
vehicle. Why? - (answers)The vehicle is collateral (the thing of value)
What is the definition of a contract? - (answers)A promise or set of promises
between two or more parties that is enforced by law
What does it mean to "force place" the insurance? - (answers)The finance source
will purchase the required coverage and charge it to the customers monthly
payment
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter? - (answers)Attorney General
What does it mean to "Accelerate the Balance." - (answers)The finance source will
make the full outstanding balance due and payable
What could block the formation of a valid contract? - (answers)Dishonesty with a
Consumer or Customer
Misrepresentation of Facts or Statements
Fraudulent Inducement
Someone Lacks Mental Capacity
Underage
, 3
What does it mean to "educate the consumer before they consummate." -
(answers)If a customer doesn't understand something in the contract, I should
make an effort to help them understand
If I don't know the answer to a term or condition on the contract I get upper
management involved to help explain it
It is my responsibility to understand the terms and conditions on the contracts I
am administering
Help the customer to understand the terms and conditions of the contract by
clarifying key items they have concerns with
What is the right of recission? - (answers)The ability for a customer to get out of a
contract
What are the three (3) steps in contracting? - (answers)Offer, Acceptance,
Consideration
A "Credit Sale" is considered _________ and a "Loan" is considered __________. -
(answers)Dealer Assisted Financing; Customer Arranged Financing
According to the federal requirements under TILA Reg Z. When do we use APR? -
(answers)As a disclosure on the installment contract
Only in installment advertising, it is not required in lease ads
Printed dialog involving the finance charge
Conversations discussing the cost of credit
AFIP Certification Exam Practice
Questions with Verified Answers | Latest
2025/2026 Update.
What does UDAP stand for? - (answers)Unfair, Deceptive Acts or Practices
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter? - (answers)Attorney General
If we treat consumers fairly and ethically, then there is ______________ on the
government to enact legislation and write additional rules. - (answers)Less
Pressure
Which organizations in our industry does the Federal Trade Commission (FTC)
oversee? - (answers)Franchise New Dealers
What does UDAAP stand for? - (answers)Unfair, Deceptive Abusive Acts or
Practices
Which organizations in our industry does the Consumer Financial Protection
Bureau (CFPB) oversee? - (answers)Independent Used Dealers
Buy Here Pay Here (BHPH)
Lease Here Pay Here (LHPH)
Finance Sources
,2
When it comes to a RISC and a lease, the financial institution has a lien on the
vehicle. Why? - (answers)The vehicle is collateral (the thing of value)
What is the definition of a contract? - (answers)A promise or set of promises
between two or more parties that is enforced by law
What does it mean to "force place" the insurance? - (answers)The finance source
will purchase the required coverage and charge it to the customers monthly
payment
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter? - (answers)Attorney General
What does it mean to "Accelerate the Balance." - (answers)The finance source will
make the full outstanding balance due and payable
What could block the formation of a valid contract? - (answers)Dishonesty with a
Consumer or Customer
Misrepresentation of Facts or Statements
Fraudulent Inducement
Someone Lacks Mental Capacity
Underage
, 3
What does it mean to "educate the consumer before they consummate." -
(answers)If a customer doesn't understand something in the contract, I should
make an effort to help them understand
If I don't know the answer to a term or condition on the contract I get upper
management involved to help explain it
It is my responsibility to understand the terms and conditions on the contracts I
am administering
Help the customer to understand the terms and conditions of the contract by
clarifying key items they have concerns with
What is the right of recission? - (answers)The ability for a customer to get out of a
contract
What are the three (3) steps in contracting? - (answers)Offer, Acceptance,
Consideration
A "Credit Sale" is considered _________ and a "Loan" is considered __________. -
(answers)Dealer Assisted Financing; Customer Arranged Financing
According to the federal requirements under TILA Reg Z. When do we use APR? -
(answers)As a disclosure on the installment contract
Only in installment advertising, it is not required in lease ads
Printed dialog involving the finance charge
Conversations discussing the cost of credit
