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

FNSCRD403 Mapping and Delivery Guide
Manage and recover bad and doubtful debts

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSCRD403 - Manage and recover bad and doubtful debts
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to correctly identify bad debts, negotiate with customers and ascertain means of recovery using actions in line with relevant credit policy.It applies to individuals who work cooperatively with others using a range of managerial and negotiation techniques to facilitate debt recovery processes.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the credit management field of work and include access to:

common office equipment, technology and consumables

credit product information

relevant software systems and data

organisational policy and procedures relating to debt recovery.

Assessors must satisfy NVR/AQTF assessor requirements.
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: Implement appropriate course of action to recover outstanding debt
  • Review account history and determine appropriate recovery action based on account history
  • Advise customers promptly of possible implications of outstanding debts and deal with any objections according to organisational guidelines and legislative requirements
  • Document agreed payment arrangements accurately according to organisational system requirements
       
Element: Monitor and review effectiveness of recovery action
  • Review customer accounts for their adherence to agreed payment arrangements
  • Identify customers’ non-compliance with agreed arrangements and manage in accordance with organisational guidelines
  • Involve internal stakeholders in review and monitoring process as required
       
Element: Re-assess account to determine eligibility for write-off
  • Re-assess account to determine if it is appropriate for write-off as agreed payment arrangements have not been met
  • Document recommendations for write-off and account closure, complying with legislation and organisational guidelines, that authorised personnel can action
       


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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Implement appropriate course of action to recover outstanding debt

1.1 Review account history and determine appropriate recovery action based on account history

1.2 Advise customers promptly of possible implications of outstanding debts and deal with any objections according to organisational guidelines and legislative requirements

1.3 Document agreed payment arrangements accurately according to organisational system requirements

2. Monitor and review effectiveness of recovery action

2.1 Review customer accounts for their adherence to agreed payment arrangements

2.2 Identify customers’ non-compliance with agreed arrangements and manage in accordance with organisational guidelines

2.3 Involve internal stakeholders in review and monitoring process as required

3. Re-assess account to determine eligibility for write-off

3.1 Re-assess account to determine if it is appropriate for write-off as agreed payment arrangements have not been met

3.2 Document recommendations for write-off and account closure, complying with legislation and organisational guidelines, that authorised personnel can action

Evidence of the ability to:

communicate effectively with customers, following organisational guidelines and legislative requirements in explaining the implications of outstanding debt and alternative payment arrangement options

apply strong negotiation skills to resolve disputes, queries and problems

use data entry and recording systems accurately.

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

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

explain the key steps or actions in the legal debt recovery process

outline the key features of organisational credit policy

identify and explain legislative requirements relevant to debt recovery

describe the key features of complaint resolution processes and complaint handling procedures

outline the roles of the various alternative dispute resolution schemes and services

explain the key requirements of legislation relating to credit and recovery of bad debts.

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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Implement appropriate course of action to recover outstanding debt

1.1 Review account history and determine appropriate recovery action based on account history

1.2 Advise customers promptly of possible implications of outstanding debts and deal with any objections according to organisational guidelines and legislative requirements

1.3 Document agreed payment arrangements accurately according to organisational system requirements

2. Monitor and review effectiveness of recovery action

2.1 Review customer accounts for their adherence to agreed payment arrangements

2.2 Identify customers’ non-compliance with agreed arrangements and manage in accordance with organisational guidelines

2.3 Involve internal stakeholders in review and monitoring process as required

3. Re-assess account to determine eligibility for write-off

3.1 Re-assess account to determine if it is appropriate for write-off as agreed payment arrangements have not been met

3.2 Document recommendations for write-off and account closure, complying with legislation and organisational guidelines, that authorised personnel can action

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
Review account history and determine appropriate recovery action based on account history 
Advise customers promptly of possible implications of outstanding debts and deal with any objections according to organisational guidelines and legislative requirements 
Document agreed payment arrangements accurately according to organisational system requirements 
Review customer accounts for their adherence to agreed payment arrangements 
Identify customers’ non-compliance with agreed arrangements and manage in accordance with organisational guidelines 
Involve internal stakeholders in review and monitoring process as required 
Re-assess account to determine if it is appropriate for write-off as agreed payment arrangements have not been met 
Document recommendations for write-off and account closure, complying with legislation and organisational guidelines, that authorised personnel can action 

Forms

Assessment Cover Sheet

FNSCRD403 - Manage and recover bad and doubtful debts
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

FNSCRD403 - Manage and recover bad and doubtful debts

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: