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Senior 2024

Self Study

  • 23

    Sections

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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 Professional Certification

  • AFIP Final Exam Review

  • How to Prepare for the Final Exam

  • AFIP Professional Certification Levels

Section 1 - Federal Laws and Regulations

  • Understanding the Law

  • Federal Regulators

  • Federal Trade Commission (FTC)

  • Consumer Financial Protection Bureau (CFPB)

  • Examples UDAP and UDAAP

  • State Laws

  • State Attorney General

  • Dealer Advocacy

  • Section - 1 Quiz

Section 2 - Contracts

  • Review Basic Contract Rules

  • 3 Elements of a Contract

  • Block the Formation of a Valid Contract

  • Credit Sale vs. Loan

  • Protect the Finance Source or Lessor

  • 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 (Hold Check)

  • 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

Section 4 - Consumer Leasing Act (CLA)

  • Leasing Definitions

  • Leasing Payments

  • Common Consumer Leasing Act / Reg. M Disclosures

  • Advertising - Closed End Leases

  • Leasing Violation Penalties

  • Leasing Provisions

  • Section - 4 Quiz

Section 5 – Rules Common to Regulations Z & M

  • Record Retention

  • Safe Harbor Protection

  • Clerical or Bona Fide Error

  • Statute of Limitations

  • The E-SIGN Act

  • Signature Requirements & Best Practices

  • Section - 5 Quiz

Section 6 – Spot Delivery

  • 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

Section 7 – Dealer Practices on Regulators’ Radar – UDAP

  • 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

Section 8 – Federal Trade Commission Credit Rules

  • FTC Credit Rules Introduction

  • Holder Notice

  • Holder Rule

  • Credit Practices Rule

  • Notice to Cosigner

  • Late Fees

  • Section - 8 Quiz

Section 9 – Federal Trade Commission Used Car Rule

  • Used Car Rule

  • Buyers Guide

  • Implied Warranty States

  • Revised Buyers Guide

  • The Revised Buyers Guides

  • Section - 9 Quiz

Section 10 – Equal Credit Opportunity Act (ECOA)

  • 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

Section 11 – 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

  • UltraFICO / Experian Boost

  • Program Comparison

  • Helping Customers with Thin Credit Files

  • Soft Pulls and a Firm Offer of Credit

  • Credit Reports

  • Bankruptcies

  • 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 - 11 Quiz

Section 12 – Protecting Nonpublic Personal Information (NPI)

  • Introduction

  • Corporate Compliance Officer (CCO)

  • Protecting NPI

  • Financial Privacy Rule

  • Safeguards Rule

  • Updated Safeguards Rule

  • Information Security Program (ISP)

  • Penalties for Noncompliance

  • The Disposal Rule

  • Red Flags Rule

  • Identity Verification

  • Practices to Prevent Identity Theft

  • Section - 12 Quiz

Section 13 – IRS/FinCEN Form 8300 Cash Reporting Rule

  • 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

Section 14 – USA PATRIOT Act & OFAC

  • Introduction to USA Patriot Act & OFAC

  • OFAC Potential “Hit”

  • OFAC Exact Match

  • Section - 14 Quiz

Section 15 – Federal Do-Not-Contact Rules

  • Phone Call Scenarios

  • Do-Not-Email Rule

  • Do-Not-Email Rule CAN-SPAM Act

  • Rules for Cell Phones

  • Section - 15 Quiz

Section 16 – Vehicle Insurance

  • About Vehicle Insurance

  • Two Things That Protect the Finance Source / Lessor

  • Liability Insurance

  • Section - 16 Quiz

Section 17 – The Magnuson-Moss Warranty Act & Vehicle Service Contracts

  • Magnuson-Moss Warranty Act

  • Three Warranty Types

  • What is a VSC?

  • The Magnuson-Moss Requirements

  • Emissions Warranties

  • Partial Zero-Emissions Vehicles (PZEV)

  • Section - 17 Quiz

Section 18 – GAP

  • GAP Protection

  • GAP Coverage Limitations

  • Military Lending Act (MLA)

  • Section - 18 Quiz

Section 19 - Voluntary Protection Products (VPP)

  • Voluntary Protection Products

  • VPP: A Model Dealership Policy

  • Installation Under NADA License by AFIP

  • Section - 19 Quiz

Section 20 - Regulatory Updates

  • Proposed Motor Vehicle Dealers Trade Regulation Rules

  • Motor Vehicle Dealers Trade Regulation Rule

  • Under Regulatory Scrutiny - Junk Fees

Section 21 – Federal Odometer Act

  • Federal Odometer Act - 1972

  • Civil and Criminal Penalties for Odometer Fraud

Section 22 – Ethics Module

  • Ethics Exam

Section 23 – State Laws

  • Candidates Are Required

  • Note: State-Specific Laws

  • Preparing for the State Law Exam

  • How to Study Online

  • How to Prepare for the State Exam

  • How to Schedule an Exam - Proctor 360

  • Follow AFIP

End