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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 types of appropriate consumer credit options for clients
   • Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries
   • Explain types of appropriate consumer credit facilities to clients in plain language
   • Provide clients with written supporting documentation and guide them through key aspects of documentation
2. Identify and discuss costs of using credit
   • 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
   • Explain fees and costs associated with different types of credit options for clients
   • Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients
3. Promote effective use of consumer credit
   • Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations
   • Discuss strategies to minimise fees and cost of credit with clients
4. Provide clients with information regarding credit reference reports
   • Explain role of credit reference agencies to clients in plain language
   • Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients
   • Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required

Performance Evidence

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.

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Knowledge Evidence

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.

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