List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify types of appropriate consumer credit options for clients | 1.1 Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries 1.2 Explain types of appropriate consumer credit facilities to clients in plain language 1.3 Provide clients with written supporting documentation and guide them through key aspects of documentation |
2. Identify and discuss costs of using credit | 2.1 Explain relevant features, terms and conditions of appropriate consumer credit facilities to clients, with impacts and possible risks disclosed in a clear and concise manner 2.2 Explain fees and costs associated with different types of credit options for clients 2.3 Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients |
3. Promote effective use of consumer credit | 3.1 Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations 3.2 Discuss strategies to minimise fees and cost of credit with clients |
4. Provide clients with information regarding credit reference reports | 4.1 Explain role of credit reference agencies to clients in plain language 4.2 Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients 4.3 Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required |
Evidence of the ability to:
comply with legislative requirements, industry regulations and code of conduct when identifying types of appropriate consumer credit options for clients and providing documentation
explain the features, terms and conditions of the appropriate consumer credit facilities to clients, taking into account any special needs
provide clients with a detailed analysis of the fees, costs and risks of appropriate consumer credit facilities
identify for clients strategies to use appropriate consumer credit facilities effectively
explain the consequences of a poor credit reference history to clients.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
explain the effect of the current economic environment on an individual’s credit and debt options
explain the advantages and disadvantages of credit
describe the principles of lending and credit
outline the key differences between secured and unsecured loans
describe the key features of relevant legislative requirements, industry regulations and codes of conduct, and how they impact on dealings with clients
define the roles and relationships between participants within the Australian financial services industry, including banks and other financial intermediaries
describe key features, terms and conditions, and risks of a range of consumer credit facilities, including fees and costs.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the credit management field of work and include access to:
common office equipment, technology and consumables
financial services product information
relevant software systems and data
organisational policy and procedures.
Assessors must satisfy NVR/AQTF assessor requirements.