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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Identify customers requiring collection activity
   • Monitor organisational reporting system regularly for possible overdue accounts
   • Access relevant customer information and retrieve records
   • Review overdue accounts and customer credit histories in accordance with organisational policy and procedures, and relevant legislation
2. Establish contact with customers and attempt to resolve outstanding payment matters
   • Determine proposed communication with customers to collect outstanding payments
   • Obtain approval to initiate communication with customers from authorised personnel in the organisation and inform other relevant external parties
   • Establish rapport with customers and ensure all communication complies with relevant legislation and organisational policy and procedures
   • Advise purpose of contact clearly and comprehensively to customers in accordance with legislative requirements
3. Negotiate resolution of outstanding payments
   • Advise customers of possibility of legal action and any other implications if outstanding payments are not resolved
   • Use appropriate techniques to achieve resolution and record negotiation outcomes accurately
   • Schedule further action to be undertaken in relation to outstanding payment matters
4. Monitor agreements to ensure adherence
   • Review accounts regularly to ensure that payments are received in accordance with negotiated arrangements
   • Address breaches of agreements in accordance with organisational policy and procedures, and legislative requirements
   • Refer outstanding payment matters to appropriate personnel as required

Performance Evidence

Evidence of the ability to:

follow organisational procedures and policy for identifying overdue accounts and collecting outstanding payments

communicate effectively with customers, explaining the implications of overdue accounts and alternative payment arrangement options following organisational guidelines and legislative requirements

apply effective negotiation skills to resolve customer outstanding payment matters

use the data entry and reporting system correctly to identify and monitor overdue accounts.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

identify and explain organisational policy changes that reflect current developments in the credit management sector

explain the key steps or actions in legal debt recovery processes

explain relevant legislative requirements of overdue account review and management

outline a range of negotiation techniques that can be used in managing overdue customer accounts.

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