The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

accurately compile debtors credit history

build and maintain rapport and trust with clients

interpret and comply with current legislative requirements and general developments in the credit management and mercantile agents field

successfully persuade debtors to come to a satisfactory agreement to repay

apply ethical principles and appropriate industry code of conduct in collection activities.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to organisation policies and procedures.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

observing processes and procedures in workplaces or role plays

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Required skills

communication skills to:

determine and confirm debt and debt settlement requirements, using questioning and active listening as required

negotiate and use dispute resolution techniques and processes

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy skills to:

accurately analyse, record and store data in accordance with organisational requirements

calculate debt status and settlement payments

literacy skills to:

read and interpret documentation from a variety of sources and recording, gathering and consolidating credit application information

draft reports and letters and complete credit application records

develop and implement debt collection processes and underpinning legal obligations

research skills using current techniques of searching and locating defaulters

IT skills for accessing and using appropriate software such as spreadsheets and databases and the internet in a collection agency or credit management context

organisational skills, including the ability to plan and sequence work

Required knowledge

basic business principles, financial arrangements and legal obligations of sole trader, partnership and organisation businesses

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

business principles and legal obligations underpinning credit management functions and their relationship to agents

relevant State or Territory and Commonwealth Acts and regulatory authorities regarding debt collection

role of the Australian Securities and Investments Commission (ASIC) in relation to:

business, principles of limited liability

insolvency and bankruptcy

principles of association under the Associations Incorporation Act

types and principles and obligations of trusts

costing of contracts

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

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Clients may include:

banks

building societies

credit unions

employers

managers

supervisors

team leaders

finance companies

financiers

government agencies

other commercial agents

private companies

solicitors.

Organisation policies and procedures may include:

organisation mission statements

complying with Privacy Act legislation

gathering information and its evaluation

legal obligations and framework

overall organisation goals and objectives

trading terms and credit limits.

Creditworthiness may include:

a report from a bureau using industry specific information such as trends

appraisal using credit scoring or other system

history of debtor from own database

reports as to creditworthiness from references

reports from a credit reporting agency.

Parties in debt may include:

a business

a company

an association

an individual.

Means of communication may include:

legal service documentation

personal discussions with debtors to provide advice and establish a common sense approach to resolution

telephone

written advice to debtors who have a history of debt and require formal procedures.

Payment or settlement of debt may include:

legal procedures required to elicit payment

verbal or written arrangements to proceed to pay

verbal undertaking to pay over a specified term.

Legal action may include:

applying to court for writ of possession

contacting a sheriff for serving of legal document

garnishee order

issuing a statement of claim

serving demand or legal notices.