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Elements and Performance Criteria

1. Plan and prepare procedures
   • Client's written instructions are accurately and clearly interpreted
   • Debtor's whereabouts is determined and an appropriate plan for contact developed
2. Negotiate debt payment and settlements
   • Most appropriate means of communication is used to establish contact and build rapport with debtor
   • Decision, with reasons for proceeding or not proceeding or taking further action with debt payment and settlements, is clearly and concisely documented after discussion with management.
3. Initiate legal process
   • Legal process is initiated, when appropriate, in line with client needs and legal requirements and progressed in accordance with court requirements
   • Necessary supporting documents are completed correctly and in line with court requirements
   • Details of debtor are acquired within legal guidelines
4. Formulate/report recommendations
   • Results of process of the information are used to determine a strategy for action
   • Recommended action is documented and presented to the client

Required Skills

Required skills

welldeveloped communication skills to determine and confirm client requirements using questioning and active listening as required negotiate and resolve disputes use effective telephone techniques as required for debtor contact liaise with others share information listen and understand use language and concepts appropriate to cultural differences literacy skills to read and interpret documentation from a variety of sources and recording gathering and consolidating client information draft reports and letters interpret and comply with legal and ethical principles and obligations welldeveloped observation and analysis skills to determine appropriate recommendations on debt collection strategies for clients that comply with legal obligations industry and organisational codes of practice and ethical principles IT skills for accessing and using appropriate software such as word processors spreadsheets and databases using internet search systems using specialist computing systems for a collection agency or credit management contexts organisational skills including the ability to plan and sequence work

Required knowledge

all relevant State or Territory and Commonwealth Acts regulatory authorities court jurisdictions appeal procedures business principles and legal obligations underpinning credit management functions and their relationship to agents business principles financial arrangements and legal obligations of sole traders partnerships companies role of the Australian Securities and Investments Commission ASIC in relation to businesses 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 for approaching debtors and debtor trends securities loans and principles factoring guarantees indemnity securities over property retention of title liens techniques of searching and locating defaulters

Evidence Required

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 debtor 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 persuade debtors to come to a satisfactory agreement to repay wherever possible 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 collection agency systems and documentation
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 setting and reviewing simulations or scenarios evaluating samples of work accessing and validating third party reports
Guidance information for assessment

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Range Statement

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 finance companies financiers government agencies other commercial agents private companies solicitors.
Communication may include:	face-to-face meetings legal service documentation personal discussion with debtors to provide advice and establish a common sense approach to resolutions telephone calls written advice to debtors who have a history of debt and require formal procedures.
Debtors may include:	a business a company an association an individual.
Debt payment and settlements may include:	legal procedures required to elicit payment verbal undertaking to pay over a specified term verbal/written arrangements to proceed to pay.
Legal process may include:	applying to a 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.

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