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Powersports Compliance

Self Study

  • 17

    Sections

Access to the Dealer Desk Book Login for Dealer Desk Book

Overview

The processes of purchasing and financing automobiles, as well as securing vehicle owner protection products, are among the most highly regulated consumer activities in the United States at both the state and federal levels.

The nonprofit Association of Finance & Insurance Professionals was founded by the industry in 1989 to certify dealership personnel to a working knowledge of the governing regulations and to establish a code of ethical conduct. AFIP has completed more than 70,000 certifications to date.

If you’re an F&I professional, or a key consumer contact representative, earning AFIP Certification means that you’ve mastered the information essential to satisfying the requisites for regulatory compliant fair dealings with your customers, finance sources, vehicle protection product providers and your employer.

Welcome to AFIP Certification

  • Welcome to the Course

  • AFIP Powersports, Marine, & Motorcycle Compliance

How to Prepare for the Compliance Exam

  • Powersports, Marine & Motorcycle Compliance Exam Review

  • How to Prepare for the Final Exam

Section 1 - Federal Laws & Understanding the Law

  • Primary Lawmaking Bodies

  • Federal Regulators

  • Federal Trade Commission

  • State Laws

  • State Attorney General

Section 2 - Contracts

  • Review Basic Contract Rules

  • Elements of a Contract

  • Credit Sale vs. Loan

  • Retail Installment Sale Contract

  • Recourse

  • Common Contract Provisions

Section 3 - Truth in Lending Act (TILA)

  • Reg. Z Required Disclosures

  • Disclosing the Contract

  • Re-Contracting

  • Deferred Down Payment (Hold Check)

  • Negative Equity

  • Advertising

  • Advertising - Fines / Penalties

  • TILA Reg. Z - Violation Penalties

Section 4 – Rules of Regulation Z

  • Record Retention / Statue of Limitations

  • Safe Harbor Protection

  • Bona Fide Error

  • The E-SIGN Act

  • Section - 5 Quiz

Section 5 – Spot Delivery

  • What is a Spot Delivery?

  • Typical State Requirements

  • The Essential Elements of a Spot Delivery Agreement

Section 6 – Dealer Practices on Regulators’ Radar – UDAP

  • Under Regulatory Scrutiny - Payment Packing

  • Under Regulatory Scrutiny - Straw Deals

  • Under Regulatory Scrutiny - Power Booking

  • Under Regulatory Scrutiny - Deception with Rate & Product

Section 7 – Federal Trade Commission Credit Rules

  • Holder Notice

  • Holder Rule

  • Notice to Cosigner

  • Late Fees

Section 8 — Federal Trade Commission Used Car Rule

  • Used Car Rule — Buyers Guide

Section 9 – Equal Credit Opportunity Act (ECOA)

  • Evaluation of Creditworthiness

  • AFIP Best Practices

  • Marital Status

  • Disparate Pricing

  • Why is the Buy Rate Marked Up

  • Record Retention

  • Risk-Based Pricing / Exception Notice

  • Exception Notice Requirements / Delivery

Section 10 – Fair Credit Reporting Act (FCRA)

  • Introduction

  • Creditworthiness & Credit Scores

  • Industry-Specific / Specialize Services

  • Two Types of Credit File Inquiries

  • Dealer-Assisted Financing Advantage – De-Duping

  • Credit Worthiness

  • Consumers with Thin Credit Files

  • Helping Customers with Thin Credit Files

  • Soft Pulls and a Firm Offer of Credit

  • Credit Reports

  • Credit Application – Best Practices

  • Credit Reports on Request

  • Disputing an Entry on a Credit Report

  • Bankruptcies

  • Fraud Alerts

  • Credit Freeze

  • Adverse Action Notice

  • Information Provided In Adverse Action Notice

Section 11 – Protecting Nonpublic Personal Information (NPI)

  • Protecting NPI

  • Corporate Compliance Officer (CCO)

  • Financial Privacy Rule

  • Safeguards Rule

  • Updated Safeguards Rule

  • Penalties for Noncompliance

  • Information Security Program (ISP)

  • The Disposal Rule

  • Red Flags Rule

  • Identity Verification

  • Practices to Prevent Identity Theft

  • A Growing Threat For Dealers

  • Credit Privacy Numbers (CPN – aka. Credit Profile Number)

Section 12 – IRS/FinCEN Form 8300 Cash Reporting Rule

  • What is Cash vs. What is Not Cash

  • Transactions that Require Filing IRS Form 8300

  • Filing Rules

  • Taxpayer Identification Number (TIN) Section

  • Exceptions to Line 6

  • Nonresident Alien

  • Suspicious Transactions

  • Civil and Criminal Penalties

Section 13 – USA PATRIOT Act & OFAC

  • Introduction to USA Patriot Act & OFAC

  • OFAC Potential “Hit”

  • OFAC Exact Match

Section 14 – Insurance

  • Liability Insurance

Section 15 – The Magnuson-Moss Warranty Act & Service Contracts

  • Magnuson-Moss Warranty Act

  • Three Warranty Types

  • What is a Service Contract?

  • The Magnuson-Moss Requirements

Section 16 – GAP Protection

  • GAP Waiver / Insurance Products

  • GAP Coverage Limitations

Section 17 – Ethics Module

  • Ethics Exam

  • Follow AFIP

End