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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. Plan and prepare initial contact
   • 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
   • 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
3. Negotiate debt payment or settlement within defined parameters
   • 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

Performance Evidence

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.

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Knowledge Evidence

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.

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