Assessor Resource

FNSMCA301
Collect debts

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to research and analyse information to determine the debtor and debt settlement status of individuals or parties such as companies or associations, negotiate with debtors and collect debt.

It applies to individuals who perform debt collection functions within organisations of any size or location.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)



Evidence Required

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. Plan and prepare initial contact

1.1 Interpret and confirm client’s written instructions and any of their relevant policy and procedures

1.2 Review comments on debtor's file to enable initial action in line with own organisation’s policy and procedures, and legislative requirements

2. Assess debtor

2.1 Establish credit worthiness of debtor through compilation of valid and relevant credit history

2.2 Cross-reference information on debtor for verification, when necessary, by file or document search

2.3 Determine appropriate and cost-effective recovery action options based on debtor's verified credit worthiness

3. Negotiate debt payment or settlement within defined parameters

3.1 Use appropriate means of communication to establish contact and build rapport with debtor

3.2 Develop debt settlement proposal that attempts mutual satisfaction for client and debtor, applying negotiation techniques, organisational guidelines and appropriate industry codes of conduct

3.3 Discuss debt settlement proposal with management and document reasons for proceeding or not proceeding, or taking further action

3.4 Confirm and record debtor and creditor agreement, and procedures for debt settlement

3.5 Make decision to refer debt for legal action, if necessary, in line with organisational policy and procedures

Evidence of the ability to:

compile debtor's credit history

assess and establish debtor's credit worthiness

interpret and comply with legislative requirements, industry code of conduct and organisational policy and procedures relevant to debt collection

negotiate effectively to come to a satisfactory agreement and gain commitment from debtor to settle debt

complete relevant documentation in accordance with industry and organisational requirements and guidelines.

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:

describe the negotiation process

outline and describe the basic business structure, financial arrangements and legal obligations of sole trader, partnership trusts and corporate businesses

provide basic information on securities, loans and principals, factoring, guarantees, indemnity, securities over property, retention of title and liens

outline creditor's obligations underpinning credit management functions and their relationship to mercantile agents

identify relevant state or territory and Commonwealth Acts and regulatory authorities regarding debt collection and mercantile agents

describe the role, procedures and relevant documentation of the various court jurisdictions and appeals procedures involved in debt collection processes.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the mercantile agents field of work and include access to:

office equipment, technology, software and consumables

organisational records, policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Plan and prepare initial contact

1.1 Interpret and confirm client’s written instructions and any of their relevant policy and procedures

1.2 Review comments on debtor's file to enable initial action in line with own organisation’s policy and procedures, and legislative requirements

2. Assess debtor

2.1 Establish credit worthiness of debtor through compilation of valid and relevant credit history

2.2 Cross-reference information on debtor for verification, when necessary, by file or document search

2.3 Determine appropriate and cost-effective recovery action options based on debtor's verified credit worthiness

3. Negotiate debt payment or settlement within defined parameters

3.1 Use appropriate means of communication to establish contact and build rapport with debtor

3.2 Develop debt settlement proposal that attempts mutual satisfaction for client and debtor, applying negotiation techniques, organisational guidelines and appropriate industry codes of conduct

3.3 Discuss debt settlement proposal with management and document reasons for proceeding or not proceeding, or taking further action

3.4 Confirm and record debtor and creditor agreement, and procedures for debt settlement

3.5 Make decision to refer debt for legal action, if necessary, in line with organisational policy and procedures

Evidence of the ability to:

compile debtor's credit history

assess and establish debtor's credit worthiness

interpret and comply with legislative requirements, industry code of conduct and organisational policy and procedures relevant to debt collection

negotiate effectively to come to a satisfactory agreement and gain commitment from debtor to settle debt

complete relevant documentation in accordance with industry and organisational requirements and guidelines.

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:

describe the negotiation process

outline and describe the basic business structure, financial arrangements and legal obligations of sole trader, partnership trusts and corporate businesses

provide basic information on securities, loans and principals, factoring, guarantees, indemnity, securities over property, retention of title and liens

outline creditor's obligations underpinning credit management functions and their relationship to mercantile agents

identify relevant state or territory and Commonwealth Acts and regulatory authorities regarding debt collection and mercantile agents

describe the role, procedures and relevant documentation of the various court jurisdictions and appeals procedures involved in debt collection processes.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the mercantile agents field of work and include access to:

office equipment, technology, software and consumables

organisational records, policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Interpret and confirm client’s written instructions and any of their relevant policy and procedures 
1.2 Review comments on debtor's file to enable initial action in line with own organisation’s policy and procedures, and legislative requirements 
Establish credit worthiness of debtor through compilation of valid and relevant credit history 
Cross-reference information on debtor for verification, when necessary, by file or document search 
2.3 Determine appropriate and cost-effective recovery action options based on debtor's verified credit worthiness 
Use appropriate means of communication to establish contact and build rapport with debtor 
Develop debt settlement proposal that attempts mutual satisfaction for client and debtor, applying negotiation techniques, organisational guidelines and appropriate industry codes of conduct 
Discuss debt settlement proposal with management and document reasons for proceeding or not proceeding, or taking further action 
Confirm and record debtor and creditor agreement, and procedures for debt settlement 
Make decision to refer debt for legal action, if necessary, in line with organisational policy and procedures 

Forms

Assessment Cover Sheet

FNSMCA301 - Collect debts
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

FNSMCA301 - Collect debts

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: