AFIP TEST FINAL COMPREHENSIVE SCRIPT
2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ A situation exists that required the customer to be re-contracted -
sign a new Retail Installment Sale Agreement five days after
consummating the deal. If the recontract period is less than seven
business days, the date recorded on the initial installment sale
agreement can be used for the second agreement.
TRUE OR FALSE Answer: FALSE
◉ The criminal penalties for an F&I practitioner violating the TILA
Reg. Z or CLA Reg. M can result in a fine of up to $________ and up to
________ year(s) in jail or a combination of both. Answer: . $5,000, 1
◉ The total sale price or deferred contract price is _________ the
largest number on the installment contract? Answer: ALWAYS
◉ A subprime or nonprime financing source is used and an
acquisition fee is charged. This fee____ Answer: cannot be passed on
to the customer, it must be deducted from the gross or profit margin.
,◉ If an advertisement has mentioned one or more of the triggering
terms, which of the triggered terms must be included in the
advertisement? Answer: The name of the finance source accepting
assignment of the installment sale agreement is not a triggered term.
◉ If the appraised value vehicle traded-in is lower than the
outstanding balance on the installment sale agreement, other
entries on the installment sale agreement can be altered to offset the
deficiency. Which of the following options are allowed? Answer: It is
not permissible to artificially inflate the value of the vehicles or post
a negative downpayment. In the eyes of the regulators, by
manipulating the numbers, the consumer does not have a clear
understanding of the elements of the transaction.
◉ Which of the following are considered criminal violations of Truth
in Lending Act/Reg. Z? Answer: A. An individual willfully gives false
or inaccurate information.
B. An individual knowingly fails to provide the information required
by Truth in Lending Act or Reg. Z.
C. Not permitting the customer to take a copy of the contract home
overnight to review before signing
◉ A dealer receives a cease and desist order for an ad they ran that
violated Truth in Lending Act/Reg. Z. If that dealership continues to
run the ad, what are the potential penalties? Answer: C. The dealer
could be required to pay a fine of up to $43,792 per day, per
violation.
,◉ When turned to the F&I office, the customer states that he'll be
making a $15,000 downpayment for a used pickup. That amount is
computed in the deal and recorded on the credit application. The
customer tenders $10,000 in cash with two $2,500 personal checks -
dated the date of the transaction - with one to be cashed in seven
days, the other in 14 days.
Which of the standards below does not qualify for this this
transaction? Answer: The $5,000 deferred down amount must be
included in the amount financed
◉ Which of the following are triggering terms on an advertisement
for an installment sale? Answer: A. The amount or percentage of any
down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge
◉ What are the criteria for "acceptance" of an offer? Answer: A. It is
accepted by the person to whom the offer was directed
B. The actual terms of the offer are accepted and new or different
terms are not proposed
C. The acceptance is "timely".
, ◉ Based on the AFIP material, if circumstances require that a second
lease agreement be executed - the customer must be re-contracted -
the date recorded on the second agreement must be the date of the
original contract?
TRUE OR FALSE Answer: FALSE
◉ What does the second "a" in UDAAP, stand for? Answer: .Abusive
◉ What are the three required elements of a contract? Answer: The
three elements of a contract are:
· An offer - I'll give you $25,800 for the car
· Acceptance - I'll take $25,800 for the car
· Consideration - The customer hands $25,800 to the dealer and the
dealer gives the customer the title and keys to the vehicle.
◉ If a customer is re-contracted five days after the original
agreement was executed, how should the second agreement be
treated? Answer: As an entirely new agreement, with the date the
second contract is executed recorded on the installment sale
agreement
◉ A contract can be defined as an agreement that includes _______.
Answer: A promise or set of promises that the law enforces or
protects
2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ A situation exists that required the customer to be re-contracted -
sign a new Retail Installment Sale Agreement five days after
consummating the deal. If the recontract period is less than seven
business days, the date recorded on the initial installment sale
agreement can be used for the second agreement.
TRUE OR FALSE Answer: FALSE
◉ The criminal penalties for an F&I practitioner violating the TILA
Reg. Z or CLA Reg. M can result in a fine of up to $________ and up to
________ year(s) in jail or a combination of both. Answer: . $5,000, 1
◉ The total sale price or deferred contract price is _________ the
largest number on the installment contract? Answer: ALWAYS
◉ A subprime or nonprime financing source is used and an
acquisition fee is charged. This fee____ Answer: cannot be passed on
to the customer, it must be deducted from the gross or profit margin.
,◉ If an advertisement has mentioned one or more of the triggering
terms, which of the triggered terms must be included in the
advertisement? Answer: The name of the finance source accepting
assignment of the installment sale agreement is not a triggered term.
◉ If the appraised value vehicle traded-in is lower than the
outstanding balance on the installment sale agreement, other
entries on the installment sale agreement can be altered to offset the
deficiency. Which of the following options are allowed? Answer: It is
not permissible to artificially inflate the value of the vehicles or post
a negative downpayment. In the eyes of the regulators, by
manipulating the numbers, the consumer does not have a clear
understanding of the elements of the transaction.
◉ Which of the following are considered criminal violations of Truth
in Lending Act/Reg. Z? Answer: A. An individual willfully gives false
or inaccurate information.
B. An individual knowingly fails to provide the information required
by Truth in Lending Act or Reg. Z.
C. Not permitting the customer to take a copy of the contract home
overnight to review before signing
◉ A dealer receives a cease and desist order for an ad they ran that
violated Truth in Lending Act/Reg. Z. If that dealership continues to
run the ad, what are the potential penalties? Answer: C. The dealer
could be required to pay a fine of up to $43,792 per day, per
violation.
,◉ When turned to the F&I office, the customer states that he'll be
making a $15,000 downpayment for a used pickup. That amount is
computed in the deal and recorded on the credit application. The
customer tenders $10,000 in cash with two $2,500 personal checks -
dated the date of the transaction - with one to be cashed in seven
days, the other in 14 days.
Which of the standards below does not qualify for this this
transaction? Answer: The $5,000 deferred down amount must be
included in the amount financed
◉ Which of the following are triggering terms on an advertisement
for an installment sale? Answer: A. The amount or percentage of any
down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge
◉ What are the criteria for "acceptance" of an offer? Answer: A. It is
accepted by the person to whom the offer was directed
B. The actual terms of the offer are accepted and new or different
terms are not proposed
C. The acceptance is "timely".
, ◉ Based on the AFIP material, if circumstances require that a second
lease agreement be executed - the customer must be re-contracted -
the date recorded on the second agreement must be the date of the
original contract?
TRUE OR FALSE Answer: FALSE
◉ What does the second "a" in UDAAP, stand for? Answer: .Abusive
◉ What are the three required elements of a contract? Answer: The
three elements of a contract are:
· An offer - I'll give you $25,800 for the car
· Acceptance - I'll take $25,800 for the car
· Consideration - The customer hands $25,800 to the dealer and the
dealer gives the customer the title and keys to the vehicle.
◉ If a customer is re-contracted five days after the original
agreement was executed, how should the second agreement be
treated? Answer: As an entirely new agreement, with the date the
second contract is executed recorded on the installment sale
agreement
◉ A contract can be defined as an agreement that includes _______.
Answer: A promise or set of promises that the law enforces or
protects
