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.
Elements and Performance Criteria
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 Performance
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.
Evidence of Knowledge
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.
Assessment Conditions
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.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 2.1, 3.3 | Accesses, manages and evaluates textual information from a variety of sources to identify relevant information |
Writing | 1.2, 1.3, 3.2 | Addresses context and purpose when generating texts for internal and external stakeholders Selects appropriate vocabulary and terminology to elicit information, convey instructions and document recommendations clearly and accurately |
Oral Communication | 1.1,1.2, 2.2, 2.3, | Engages in complex negotiations to elicit and clarify the viewpoints of others using careful listening and questioning Uses clear and detailed language to express requirements and to reach agreement with others |
Numeracy | 1.1, 1.3, 2.1, 3.1, 3.3 | Evaluates and reviews numerically expressed information to inform action Uses medium level mathematical calculations to establish and monitor requirements for compliance or further action as required |
Navigate the world of work | 3.2, 3.3 | Takes personal responsibility for following explicit and implicit policies, procedures and legislative requirements Identifies and acts on issues that contravene relevant policies, procedures and legal requirements |
Interact with others | 1.2, 2.2, 2.3, 3.2 | Identifies and explores differences in a diverse range of people in the work context and makes adjustments to communication in recognition of these differences Recognises behaviours and triggers that contribute to conflict and implements strategies to moderate conflict Selects and uses appropriate conventions and protocols when communicating to customers and co-workers in a range of work contexts |
Get the work done | 1.1, 2.1, 3.1, 3.3 | Makes routine decisions and implements standard procedures for routine tasks, using formal decision-making processes for more complex and non-routine situations Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effective outcomes Uses the main features and functions of digital tools to complete work tasks |
Sectors
Credit management