Basic Certification Course

Self Study

148

Lessons

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.

Sections

Welcome to AFIP Certification

Welcome to the Course
About AFIP Professional Certifcation
AFIP Professional Certification Exam Preparation
AFIP Final Exam Review
Certification Levels

Section 1 - Understanding the Laws (Federal Laws)

Understanding the Laws
Understanding the Laws - Part 2

Section 2 - Contracts

Review Basic Contract Rules
Elements of a Contract
Credit Sale vs. Loan
Retail Installment Sale Agreement Provisions
Recourse
Common Contract Provisions
Section - 2 Quiz

Section 3 - Truth in Lending Act (TILA)

Reg. Z Required Disclosures
Disclosing the Contract
Re-Contracting
Deferred Down Payment
Negative Equity
If Down Payment is greater than Negative Equity
Installment Sale Agreement
First-Pencil Payment Quote
Advertising
FTC’s “Cooling-Off” Rule
Violation Penalties
Section - 3 Quiz

Section 4 - Consumer Leasing Act (CLA)

Definitions
Payments
Common Consumer Leasing Act / Reg. M Disclosures
Advertising
Violation Penalties
Leasing Provisions
Section - 4 Quiz

Section 5 – Rules Common to Regulations Z & M

Record Retention
Safe Harbor Protection
Bona Fide Error
Statute of Limitations
UDAP and UDAAP CLAIMS – Unfair or Deceptive Acts or Practices
Section - 5 Quiz

Section Y – Spot Delivery

What is a Spot Delivery?
General Practices
Federal Requirements
Typical State Requirements
Process
Areas of Contention
The Essential Elements of a Spot Delivery Agreement

Section Z – Dealer Practices on Regulators’ Radar – UDAP

Under Regulatory Scrutiny - 3 Types
Under Regulatory Scrutiny - Payment Packing
Under Regulatory Scrutiny - Straw Deals
Under Regulatory Scrutiny - Power Booking

Section 6 – Federal Trade Commission Credit Rules

FTC Credit Rules Introduction
Holder-In-Due-Course Rule
Holder Rules
Credit Practices Rule
Notice to Cosigner
Late Fees
Section - 6 Quiz

Section 7 – Federal Trade Commission Used Car Rule

Used Car Rule
Buyer's Guide
Implied Warranty States
Revised Buyer's Guide
Section - 7 Quiz

Section 8 – Equal Credit Opportunity Act (ECOA)

Evaluation of Creditworthiness
AFIP Best Practices
Marital Status
Disparate Pricing
Dealer Participation Rate Modification Form
AFIP Recommended Policy Contacts
Buy Rate Mark Up
Transaction Origination Expense
Dealer - Arranged Financing
Dealer Markup Constraints
Record Retention
Risk-Based Pricing / Exception Notice
Exception Notice Requirements
Section - 8 Quiz

Section 9 – Fair Credit Reporting Act (FCRA)

Introduction
Credit Worthiness & Credit Scores
Industry-Specific - Specialize Services
Dealer-Assisted Financing Advantage – De-Duping
Two Types of Credit File Inquiries
Consumers with Thin Credit Files
UltraFICO / Experian Boost
Program Comparison
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
Fraud Alerts
Credit Freeze
Adverse Action Notice
Information Provided In Adverse Action Notice
Section - 9 Quiz

Section 10 – Protecting Nonpublic Personal Information (NPI)

Introduction
Financial Privacy Rule
Safeguards Rule
Penalties for Noncompliance
Disposal Rule
Red Flags Rule
Identity Verification
Practices to Prevent Identity Theft
Section - 10 Quiz

Section 11 – IRS/FinCEN Form 8300 Cash Reporting Rule

Introduction to IRS Form 8300
What’s Not Cash?
Transactions that Require Filing IRS Form 8300
Filing Rules
Taxpayer Identification Number (TIN) Section
Exceptions to Line 6
Non-Resident Alien
Suspicious Transactions
Civil and Criminal Penalties
Section - 11 Quiz

Section 12 – USA PATRIOT Act & OFAC

Introduction to USA Patriot Act & OFAC
What to Do if You Have a Potential “Hit”
What to Do if You Have an Exact Match
Section - 12 Quiz

Section 13 – Federal Do-Not-Contact Rules

Do-Not-Call Rule
Do-Not-Email Rule
CAN-SPAM Act Requirements
Do-Not-Email Rule CAN-SPAM Act
Rules for Cell Phones
Section - 13 Quiz

Section 14 – Federal Odometer Act

Federal Odometer Act- 1972
Civil and Criminal Penalties for Odometer Fraud
Section - 14 Quiz

Section 15 – Vehicle Insurance

About Insurance
Customer Doesn't Buy Required Insurance
Section - 15 Quiz

Section 16 – The Magnuson-Moss Warranty Act & Vehicle Service Contracts

About Magnuson-Moss Warranty Act
Warranty Types
What is VSC?
The Magnuson-Moss Warranty Act
Emissions Warranties
Standards for Partial Zero-Emissions Vehicles
Section - 16 Quiz

Section 17 – GAP Protection & VPPs

GAP Protection
GAP Coverage Limitations
Department of Defense
Voluntary Protection Products
VPP: A Model Dealership Policy
Section - 17 Quiz

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