Welcome to the Course
Sections
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 100,000 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 the Course
How to Prepare for the Final Exam
AFIP Final Exam Review
How to Prepare for the Final Exam
Learning Management System (AFIP LMS)
AFIP Professional Certification Levels
Understanding the Law
Federal Regulators
Federal Trade Commission (FTC)
Consumer Financial Protection Bureau (CFPB)
Examples UDAP and UDAAP
State Laws
State Attorney General
Customer Treatment and Laws
Dealer Advocacy
Section - 1 Quiz
Review Basic Contract Rules
3 Elements of a Contract
Block the Formation of a Valid Contract
Credit Sale vs. Loan
Retail Installment Sale Contract and Consumer Lease Agreements
Recourse
Common Contract Provisions
Contract Provisions Notice
Section - 2 Quiz
Reg. Z Required Disclosures
Disclosing the Contract
Disclosing the Contract - Continued
Re-Contracting
Negative Equity - Gross or Net
Precomputed vs. Simple Interest (Finance Charge on a RISC)
First-Pencil Payment Quote
Installment Advertisements
Advertising - Fines / Penalties
FTC’s “Cooling-Off” Rule
TILA Reg Z - Violation Penalties
Section - 3 Quiz
Leasing Definitions
Leasing Payments
Common Consumer Leasing Act / Reg. M Disclosures
Section - 4 Quiz
Record Retention
Statute of Limitations
Safe Harbor Protection
Clerical or Bona Fide Error
The E-SIGN Act
Section - 5 Quiz
What is a Spot Delivery?
Spot Delivery General Practices
Federal Requirements
Typical State Requirements
Process
Areas of Contention
The Essential Elements of a Spot Delivery Agreement
Section - 6 Quiz
Under Current Regulatory Scrutiny
Under Regulatory Scrutiny - Payment Packing
Under Regulatory Scrutiny - Addendums
Under Regulatory Scrutiny - Straw Deals
Under Regulatory Scrutiny - Power Booking
Under Regulatory Scrutiny - Deception with Rate & Product
Section - 7 Quiz
FTC Credit Rules Introduction
Holder Notice
Holder Rule
Credit Practices Rule
Notice to Cosigner
Late Fees
Section - 8 Quiz
Used Car Rule
Buyers Guide
Implied Warranty States
Buyers Guide Penalties
Revised Buyers Guide
The Revised Buyers Guides
Section - 9 Quiz
Evaluation of Creditworthiness
AFIP Best Practices
Marital Status
Disparate Pricing
AFIP Recommended Policy Contacts
Best Practice to Avoid Disparate Pricing
Dealer Participation Rate Modification Form
Why the Buy Rate is Marked Up
Transaction Origination Expense
Dealer-Arranged Financing
Dealer Markup Constraints
Record Retention
Risk-Based Pricing / Credit Score Disclosure Notice / Exception Notice
Exception Notice Requirements / Delivery
Section - 10 Quiz
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
Program Comparison
Credit Reports
Credit Reports on Request
Disputing an Entry on a Credit Report
Negative Information on Credit Reports
Fraud Alerts
Credit Freeze
Adverse Action Notice
Information Provided In Adverse Action Notice
Section - 11 Quiz
Protecting NPI
Corporate Compliance Officer (CCO)
Rules and Acts that Protect NPI
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
Synthetic Identity Fraud
Synthetic Fraud
Section - 12 Quiz
Introduction to IRS Form 8300
What’s Not Cash?
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
Non-Resident Alien
Suspicious Transactions
Civil and Criminal Penalties
Section - 13 Quiz
Introduction to USA Patriot Act & OFAC
OFAC Potential “Hit”
OFAC Exact Match
Section - 14 Quiz
About Vehicle Insurance
Two Things That Protect the Finance Source / Lessor
Liability Insurance
Section - 15 Quiz
Magnuson-Moss Warranty Act
Three Warranty Types
What is a VSC?
The Magnuson-Moss Requirements
Emissions Warranties
Section - 16 Quiz
GAP Protection
GAP Coverage Limitations
Section - 17 Quiz
Voluntary Protection Products
VPP: A Model Dealership Policy
Section - 18 Quiz
Ethics Exam
How to Study Online
How to Prepare for the State Exam
Candidates Are Required
Note: State-Specific Laws
Preparing for the State Law Exam
A Continuation...
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