AFIP Quiz| Complete Questions and answers| Already graded| Guaranteed Pass| New 2026

AFIP Quiz| Complete Questions and answers| Already graded| Guaranteed Pass| New 2026 Which of the following disclosures are required by the Consumer Leasing Act/Reg. M to be on a lease agreement? · Detailed information regarding the lessee's responsibility for maintaining and servicing the vehicle · Excess wear and use standards · An early termination fee · The lessee's requirement to provide the vehicle insurance required by the lessor · Other items not addressed in the question The APR or Annual Percentage Rate is a mandated disclosure. It must be used in oral discussions with a customer, in funding-related advertisements, and on the retail installment sale agreement. A customer asks, what does APR mean? Your response should be: That's the "cost of credit" as a yearly rate. As noted in the Truth in Lending Act and Reg. Z, if the customer owes more on the trade-in than the used car manager allowed, what should the F&I manager do? A. Record the deficiency as a negative down payment. B. Increase the price of the vehicle and/or the trade-in so the numbers still add up correctly. C. Depending on the situation, either A or B. D. None of the above If a Dealer receives a cease and desist order for an ad they ran that violated the Truth in Lending Act/Reg. Z. If the Dealer continues to run the ad, what are the potential penalties? They could be required to pay a fine of up to $41,484 per day, per violation Which Act does Regulation Z implement? Truth in Lending Act How are deferred down payments treated under Truth in Lending Act and Regulation Z? A deferred downpayment occurs when the customer commits to a larger dollar amount than the unencumbered funds he is able to provide at the time the request for credit is submitted to a finance source. (Also referred to as a "hold-check") (The customer tenders $3,000 in cash at the time the credit application is completed and sent to a funding source. However, the customer promises to provide another $2,000 in cash within five days. The request for credit sent to the funding source indicates a downpayment of $5,000.) · The total amount of the deferred downpayment must be paid in full before the second otherwise regularly scheduled payment. (Before that second direct withdrawal is taken from the customer's bank account, 100% of the deferred amounts must have been paid.0 · A finance charge cannot be imposed on the deferred amount. · The deferred amount cannot be included in the amount financed - it must be recorded (included in) the recorded downpayment · With the exception of California, the deferred downpayment NOTE: If the customer provides one or more check to be included in the total amount of money recorded as the downpayment (hold-checks) all of the checks have to be dated as of the date of the transaction. You cannot collect "post-dated" checks. Whenever discussing financing with a prospective customer regarding the cost of credit, regardless of if it's in an oral discussion, advertisement or during disclosure on an installment sale contract, the term "APR" or "annual percentage rate" should be used. TRUE / FALSE TRUE According to Regulation Z, it is necessary to disclose APR and the Finance Charge? TRUE?False TRUE The Truth In Lending Act (TILA) is implemented by Regulation Z? TRUE ? FALSE TRUE With the exception of some Precomputed Interest contracts used by secondary finance sources, all other installment sales contracts are simple interest or interest-bearing contracts. The following is a layman's explanation of a simple interest installment sale transaction. In a precomputed contract the finance charge is computed on the assumption the contract will run full term. If the customer terminates the agreement during the repayment term, he will receive a refund of the unearned premium. In a simple interest- or interest-bearing installment sale agreement, the finance charge is computed daily and paid monthly throughout the term of the agreement. If the customer pays-off the vehicle before the scheduled end of the contract there is unearned finance charge money to refund, but it has been each month the contract has been in force. There is no refund of the unearned finance chargE TRUE /FALSE TRUE The term Contract Provisions is a TILA box statement. It alerts the customer to the important information found on the front and back of the agreement. If in reading contract provisions, the customer asked you to explain the Acceleration Clause, your response would be? A contractual right to accelerate the balance of the installment sale agreement if the customer fails to make timely monthly payments or to secure and maintain the required property insurance There is a government requirement for an advertisement if you mention certain terms in the ad known as triggering terms then you must include all of another set of terms known as the triggered terms. Which of the terms listed below does NOT qualify as triggering term?