AFIP Basic Certification EXAM STUDY
GUIDE 2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. (True/False): Ignorance of the law will shield you from liability if you are
noncompliant. - ANSWER ✔ False
2. (True/False): As an F&I manager working directly with customers, you are
individually responsible for your actions and what you say to each customer.
- ANSWER ✔ True
3. In a typical credit transaction the (bank)/(dealer) is the creditor. - ANSWER
✔ The dealer is the creditor
4. What is a contract? - ANSWER ✔ A contract is an agreement involving a
promise or set of promises that the law enforces or protects.
5. The formation of a contract requires three elements: - ANSWER ✔ 1. Offer
2. Acceptance
3. Consideration
6. An offer consists of three elements: - ANSWER ✔ 1. An expression of a
promise or commitment (intent) to enter a contract
2. An expression of definite and certain terms
, 3. The communication of the offer to the offeree (in this case, the customer)
7. (True/False) The Dodd-Frank Wall Street Reform Act eliminates the need to
comply with state laws. - ANSWER ✔ False
8. The Dodd-Frank Act outlines the new bureau's functions, which include
_______. - ANSWER ✔ -To research, monitor and publish information
relative to the consumer product and service market
-To supervise covered persons for compliance
-To issue rules identifying unfair, deceptive or abusive acts or practices
9. The Dodd-Frank Act amended the FCRA to require disclosure of _______ in
Adverse Action Notices. - ANSWER ✔ Credit scores in Adverse Action
Notices
10.(True/False) Because most dealers are exempt from direct CFPB oversight,
they don't need to worry about compliance with the Dodd-Frank Act. -
ANSWER ✔ False
11.The statute of limitations for the Dodd-Frank Act is _______ year(s) from
the date of a discovery of a violation. - ANSWER ✔ 3
12.Fines/Penalties - ANSWER ✔ Regulation Z/TILA: $5,000/One year
Regulation M/CLA: $5,000/One year
Credit Practices Rule: $16,000
Failing to file Form 8300: $250,000 (Individuals) $500,000 (corporations)
Deceptive Ad: $16,000
FOA: $2,000/3 years
Safeguard: $16,000
OFAC: 30 years/ $10 million (Corporations) / $5 million (Individuals)
,13.Days to notify customer - ANSWER ✔ TILA/Reg. Z: Within 60 days of
discovering error
ECOA: 30 days after customer is denied credit
14.Recordkeeping Requirements - ANSWER ✔ TILA/Reg. Z: For 2 years after
date of disclosure
Form 8300: 5 years
OFAC: 5 years
15.Power Booking (6 things) - ANSWER ✔ - violation of dealer's agreement
w/ finance source
- when detected after the fact —-> dealer will have to buy back the
installment agreement
- phantom/ ghost options will come back to haunt when the vehicle is
traded or repo'd
- UDAP violation
- finance sources have programs to identify the equipment
- termination, loss of AFIP certification
16.FTC Credit Rules: the Holder Rule - ANSWER ✔ - on the back of the
contract
- A.K.A. Holder-in-Due-Course Rule -or- Preservation of Consumers'
Claims & Defenses
- legal disclaimer stating WHO can sue WHOM
- the "Holder" = finance source
- debtor = customer
- seller = dealer
- chain of action: customer —> dealer —> finance source
17.FTC Credit Rules: Notice to Co-signer - ANSWER ✔ - written notice
- same language as RISC
, - tells them their obligations
18.FTC Credit Rules: late fees - can be charged in 3 situations: - ANSWER ✔ -
pmt. not made on time
- miss a pmt. (late fee charged each month until acct. is brought current)
- when deferring a pmt.
19.FTC Used Car Rule: Buyers Guide (4 requirements) - ANSWER ✔ - must
be visible in window if vehicle is for sale
- addt'l pamphlet must be provided for more warranty info
- needs to reflect terms @ time of sale
- can't use catch-all terms, e.g. "Powertrain"
20.FTC Used Car Rule: Buyers Guide - Spanish transactions - ANSWER ✔ -
English version has a statement in Spanish at the bottom
- If the transaction is being conducted in Spanish, then the Buyers
Guide needs printed in Spanish AND posted on the vehicle in Spanish
21.FTC Used Car Rule: Buyers Guide - Buyers Awareness Provisions -
provides 2 government websites for what...? - ANSWER ✔ safety recalls &
vehicle history reports
22.FTC Used Car Rule: Buyers Guide - Complaint Section requires what...? -
ANSWER ✔ - name
- number to call
- title of contact
23.ECOA stands for ________ and supports Reg ____ - ANSWER ✔ Equal
Credit Opportunity Act; Reg B
GUIDE 2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. (True/False): Ignorance of the law will shield you from liability if you are
noncompliant. - ANSWER ✔ False
2. (True/False): As an F&I manager working directly with customers, you are
individually responsible for your actions and what you say to each customer.
- ANSWER ✔ True
3. In a typical credit transaction the (bank)/(dealer) is the creditor. - ANSWER
✔ The dealer is the creditor
4. What is a contract? - ANSWER ✔ A contract is an agreement involving a
promise or set of promises that the law enforces or protects.
5. The formation of a contract requires three elements: - ANSWER ✔ 1. Offer
2. Acceptance
3. Consideration
6. An offer consists of three elements: - ANSWER ✔ 1. An expression of a
promise or commitment (intent) to enter a contract
2. An expression of definite and certain terms
, 3. The communication of the offer to the offeree (in this case, the customer)
7. (True/False) The Dodd-Frank Wall Street Reform Act eliminates the need to
comply with state laws. - ANSWER ✔ False
8. The Dodd-Frank Act outlines the new bureau's functions, which include
_______. - ANSWER ✔ -To research, monitor and publish information
relative to the consumer product and service market
-To supervise covered persons for compliance
-To issue rules identifying unfair, deceptive or abusive acts or practices
9. The Dodd-Frank Act amended the FCRA to require disclosure of _______ in
Adverse Action Notices. - ANSWER ✔ Credit scores in Adverse Action
Notices
10.(True/False) Because most dealers are exempt from direct CFPB oversight,
they don't need to worry about compliance with the Dodd-Frank Act. -
ANSWER ✔ False
11.The statute of limitations for the Dodd-Frank Act is _______ year(s) from
the date of a discovery of a violation. - ANSWER ✔ 3
12.Fines/Penalties - ANSWER ✔ Regulation Z/TILA: $5,000/One year
Regulation M/CLA: $5,000/One year
Credit Practices Rule: $16,000
Failing to file Form 8300: $250,000 (Individuals) $500,000 (corporations)
Deceptive Ad: $16,000
FOA: $2,000/3 years
Safeguard: $16,000
OFAC: 30 years/ $10 million (Corporations) / $5 million (Individuals)
,13.Days to notify customer - ANSWER ✔ TILA/Reg. Z: Within 60 days of
discovering error
ECOA: 30 days after customer is denied credit
14.Recordkeeping Requirements - ANSWER ✔ TILA/Reg. Z: For 2 years after
date of disclosure
Form 8300: 5 years
OFAC: 5 years
15.Power Booking (6 things) - ANSWER ✔ - violation of dealer's agreement
w/ finance source
- when detected after the fact —-> dealer will have to buy back the
installment agreement
- phantom/ ghost options will come back to haunt when the vehicle is
traded or repo'd
- UDAP violation
- finance sources have programs to identify the equipment
- termination, loss of AFIP certification
16.FTC Credit Rules: the Holder Rule - ANSWER ✔ - on the back of the
contract
- A.K.A. Holder-in-Due-Course Rule -or- Preservation of Consumers'
Claims & Defenses
- legal disclaimer stating WHO can sue WHOM
- the "Holder" = finance source
- debtor = customer
- seller = dealer
- chain of action: customer —> dealer —> finance source
17.FTC Credit Rules: Notice to Co-signer - ANSWER ✔ - written notice
- same language as RISC
, - tells them their obligations
18.FTC Credit Rules: late fees - can be charged in 3 situations: - ANSWER ✔ -
pmt. not made on time
- miss a pmt. (late fee charged each month until acct. is brought current)
- when deferring a pmt.
19.FTC Used Car Rule: Buyers Guide (4 requirements) - ANSWER ✔ - must
be visible in window if vehicle is for sale
- addt'l pamphlet must be provided for more warranty info
- needs to reflect terms @ time of sale
- can't use catch-all terms, e.g. "Powertrain"
20.FTC Used Car Rule: Buyers Guide - Spanish transactions - ANSWER ✔ -
English version has a statement in Spanish at the bottom
- If the transaction is being conducted in Spanish, then the Buyers
Guide needs printed in Spanish AND posted on the vehicle in Spanish
21.FTC Used Car Rule: Buyers Guide - Buyers Awareness Provisions -
provides 2 government websites for what...? - ANSWER ✔ safety recalls &
vehicle history reports
22.FTC Used Car Rule: Buyers Guide - Complaint Section requires what...? -
ANSWER ✔ - name
- number to call
- title of contact
23.ECOA stands for ________ and supports Reg ____ - ANSWER ✔ Equal
Credit Opportunity Act; Reg B
