Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSCRD401A Mapping and Delivery Guide
Assess credit applications

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSCRD401A - Assess credit applications
Description This unit describes the performance outcomes, skills and knowledge required to assess and verify information provided in credit applications, establish credit terms and limits, and notify customers of credit application outcomes.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application The unit may be adapted to meet the specific needs of credit management and debt recovery job roles.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Satisfy initial enquiry
  • Customer initial enquiries on the type, range and availability of credit are responded to and information provided in ways which show courtesy and respect for and recognise the special needs of the customer
  • Basic information such as terms and conditions and interest rate are advised and potential securitisation needs determined in accordance with credit policy and legislative requirements
       
Element: Assess and monitor credit information
  • Credit applications and documentation are verified in accordance with organisation policy and procedures to maintain accuracy of credit database information
  • Credit information is analysed to establish that sufficient evidence of accurate information has been provided
  • Processing of applications is completed in accordance with organisation risk policy and timelines
  • Continuing liaison with debtor and relevant internal and external personnel is maintained to ensure information is kept up to date and disseminated appropriately
       
Element: Assess the risk
  • Applicant's financial circumstances are identified in order determine the level of risk associated with the application
  • Possible risks associated with the application or applicant are identified and evaluated in order to minimise or protect against risk
  • The need to take security to minimise risk exposure is identified in accordance with organisation credit policies
  • Assessment is documented in accordance with organisation procedures
       
Element: Establish credit terms and limits
  • Credit decision is made based on assessed information and in accordance with organisation risk management policy
  • Credit terms and limits are determined within organisation credit policy guidelines and current criteria for risk management objectives and customer is advised of the credit decision promptly and courteously
  • Credit account administration is completed according to organisation credit policy and timelines and legislative requirements
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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:

thoroughly and accurately check application details

interpret and apply appropriate legislation

implement organisation credit policy

efficiently use data entry and recording systems.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the 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 financial records.

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

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

communication skills to:

determine and confirm credit requirements and to clarify, discuss and update account information, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform credit related calculations

use credit assessment software, spreadsheets and databases

access web-based information services

researchand analysis skills for accessing, interpreting and managing credit application and assessment information to determine credit terms and limits

interpersonal skills to deal effectively with credit applicants and to liaise with other team members

judgement skills for making credit assessments

organisational skills, including the ability to plan and sequence work

Required knowledge

developments in the credit management sector

organisational policy, procedures and systems

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.

Special needs of the customer may include needs related to:

age

cultural background

comprehension

disability

the language.

Credit policy includes reference to:

compliance

national Consumer Credit Code requirements

income

satisfactory credit history

security requirements.

Organisation policy and procedures may cover:

accepting and rejecting credit applications

gathering information and its evaluation

legal obligations and framework

liaison, information dissemination and marketing to internal and external parties

maintenance of customer account files

organisation procedures, practices and securitisation

overall organisation goals and objectives

reviewing and adjusting credit limits for established customers

setting credit limits or credit lines for applications

trading terms and credit limits.

Credit database information may include:

account records

agency reports

credit management records

judgements

master client list

trade overseas information

trade reference information.

Credit information may include:

changes in organisation charges

creditworthiness

director or shareholder changes

economic conditions including interest rates

entity details, addresses and locations

financial information such as:

cheque accounts

credit agreements

budget accounts

add-on accounts

lending authorities, personal loans and mortgages

marketing patterns in the economy

payment patterns

purchasing patterns

remittance details

letters of credit

promissory notes

bills of sale

purchase orders

trading entities and variations.

Security may include:

application may be for an unsecured or secured loan

goods mortgage

real property mortgage

third party security:

co-borrower

guarantor

Personal Property Securities Act requirements.

Legislative requirements may include:

Australian Securities and Investments Commission (ASIC) Act

Bankruptcy Act

Bills of Sale and Other Instruments Act

Cheques and Payment Orders Act

contract law

Corporations Act

Door to Door Sales Act or equivalent

Evidence Reproduction Act or equivalent

Fair Trading Act

Magistrate's Court Act

National Consumer Credit Protection Act

partnership Acts

Personal Property Securities Act

Privacy Act

Small Debts Court Act or equivalent

Trade Practices Act.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Customer initial enquiries on the type, range and availability of credit are responded to and information provided in ways which show courtesy and respect for and recognise the special needs of the customer 
Basic information such as terms and conditions and interest rate are advised and potential securitisation needs determined in accordance with credit policy and legislative requirements 
Credit applications and documentation are verified in accordance with organisation policy and procedures to maintain accuracy of credit database information 
Credit information is analysed to establish that sufficient evidence of accurate information has been provided 
Processing of applications is completed in accordance with organisation risk policy and timelines 
Continuing liaison with debtor and relevant internal and external personnel is maintained to ensure information is kept up to date and disseminated appropriately 
Applicant's financial circumstances are identified in order determine the level of risk associated with the application 
Possible risks associated with the application or applicant are identified and evaluated in order to minimise or protect against risk 
The need to take security to minimise risk exposure is identified in accordance with organisation credit policies 
Assessment is documented in accordance with organisation procedures 
Credit decision is made based on assessed information and in accordance with organisation risk management policy 
Credit terms and limits are determined within organisation credit policy guidelines and current criteria for risk management objectives and customer is advised of the credit decision promptly and courteously 
Credit account administration is completed according to organisation credit policy and timelines and legislative requirements 

Forms

Assessment Cover Sheet

FNSCRD401A - Assess credit applications
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSCRD401A - Assess credit applications

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: