Application
This unit describes the skills and knowledge required to identify customer accounts which have outstanding payments and negotiate agreements that are monitored for compliance or further action.
It applies to individuals who may use a range of organisational and negotiation skills to plan, manage and monitor their work. This unit may be adapted to meet a range of debt recovery and debt management job roles.
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. Identify customers requiring collection activity | 1.1 Monitor organisational reporting system regularly for possible overdue accounts 1.2 Access relevant customer information and retrieve records 1.3 Review overdue accounts and customer credit histories in accordance with organisational policy and procedures, and relevant legislation |
2. Establish contact with customers and attempt to resolve outstanding payment matters | 2.1 Determine proposed communication with customers to collect outstanding payments 2.2 Obtain approval to initiate communication with customers from authorised personnel in the organisation and inform other relevant external parties 2.3 Establish rapport with customers and ensure all communication complies with relevant legislation and organisational policy and procedures 2.4 Advise purpose of contact clearly and comprehensively to customers in accordance with legislative requirements |
3. Negotiate resolution of outstanding payments | 3.1 Advise customers of possibility of legal action and any other implications if outstanding payments are not resolved 3.2 Use appropriate techniques to achieve resolution and record negotiation outcomes accurately 3.3 Schedule further action to be undertaken in relation to outstanding payment matters |
4. Monitor agreements to ensure adherence | 4.1 Review accounts regularly to ensure that payments are received in accordance with negotiated arrangements 4.2 Address breaches of agreements in accordance with organisational policy and procedures, and legislative requirements 4.3 Refer outstanding payment matters to appropriate personnel as required |
Evidence of Performance
Evidence of the ability to:
follow organisational procedures and policy for identifying overdue accounts and collecting outstanding payments
communicate effectively with customers, explaining the implications of overdue accounts and alternative payment arrangement options following organisational guidelines and legislative requirements
apply effective negotiation skills to resolve customer outstanding payment matters
use the data entry and reporting system correctly to identify and monitor overdue accounts.
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:
identify and explain organisational policy changes that reflect current developments in the credit management sector
explain the key steps or actions in legal debt recovery processes
explain relevant legislative requirements of overdue account review and management
outline a range of negotiation techniques that can be used in managing overdue customer accounts.
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 for payment 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, 1.2, 1.3, 4.1 | Critically evaluates relatively complex texts and other information to determine if action is required |
Writing | 1.3, 2.1, 2.4, 3.1, 3.2, 3.3 | Documents actions and required information using clear and detailed language specific to the purpose of a range of communications with customers and external entities |
Oral Communication | 2.2-2.4, 3.1, 3.2, 4.3 | Clearly articulates requirements using language, tone and pace appropriate to the audience and the environment Uses careful listening and questioning techniques to negotiate and confirm mutual understanding of the agreement |
Numeracy | 1.1, 1.3, 4.2 | Uses a range of mathematical skills to interpret accounting records for breaches and calculate overdue amounts |
Navigate the world of work | 1.3, 2.3, 2.4, 4.2 | 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 in managing customer accounts |
Interact with others | 2.1-2.4, 3.1, 4.3 | Uses a range of strategies and reads verbal and non-verbal signals to establish a sense of connection and build rapport with customers Negotiates positive outcomes for complex problematic exchanges Recognises and accommodates basic differences and priorities of others |
Get the work done | 1.1-1.3, 3.2-3.3, 4.1-4.2 | Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effective outcomes Makes routine decisions and implements standard procedures for routine tasks, using formal decision-making processes for more complex and non-routine situations Uses the main features and functions of digital tools to complete work tasks |
Sectors
Credit management