This unit may be adapted to meet a range of debt recovery and debt management job roles.

ELEMENT

PERFORMANCE CRITERIA

1. Identify customers requiring collection activity

1.1. Organisation overdue account reporting system is regularly monitored for possible collection action

1.2. Relevant customer information is accessed and records retrieved

1.3. Overdue debtors are reviewed in accordance with organisation policy and procedures and relevant legislation

2. Establish contact with customer and attempt to resolve outstanding payment matters

2.1. Proposed communication with customer to collect outstanding payments is determined and confirmed with authorised personnel in the organisation and the correct entity in the outstanding payment matter

2.2. Rapport with the customer is established and all communication is in accordance with relevant legislation and company policy and procedures

2.3. The purpose of contact is clearly and comprehensively advised to the organisation in accordance with legislative requirements

3. Negotiate resolution of outstanding payments

3.1. Debtors are advised of the possibility of legal action and any other implications of not resolving outstanding payments

3.2. Appropriate techniques are used to achieve resolution and the outcomes of negotiation are accurately recorded

3.3. Further action to be undertaken in relation to outstanding payment matters is diarised

4. Agreement is monitored to ensure adherence

4.1. Account is regularly reviewed to ensure that payments are received in accordance with the negotiated arrangement

4.2. Breaches of agreement are addressed in accordance with organisation policy and procedures and legislative requirements

4.3. Outstanding payment matters are referred to appropriate personnel as required

Required skills

well-developed communication and interpersonal skills to:

determine and confirm outstanding payment status, using questioning and active listening as required

tactfully negotiate payment options with customers by advocating strategies and outcomes

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences, comprehension, age, possible disability and language level of the customer

numeracy and IT skills to:

perform outstanding payment calculations

access and update account records electronically

access web based information services

literacy skills to:

read and interpret documentation from a variety of sources

provide written documentation to customers on payment options and agreements

provide advice to debt recovery agencies and authorising personnel

research and analysis for accessing, interpreting and managing information and to ensure compliance with relevant legislation

judgement skills for making outstanding payment decisions

organisational skills, including the ability to plan and sequence work

Required knowledge

all current developments in the credit management sector and organisation policy

all current and legal means of debt recovery action and processes

relevant legislative requirements

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:

interpret and apply appropriate legislation

implement organisation outstanding payments policy

use liaison skills to clarify information for all credit accounts and interpersonal skills to achieve positive outcomes

apply effective negotiation skills to resolve customer outstanding payment matters

accurately 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 organisational policies and procedures relating to outstanding payment recovery.

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 an

setting and reviewing scenarios

accessing and validating third party reports.

Guidance information for assessment

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.

Organisation policy and procedures may cover:

assistance to be provided to customers on billing and collection problems

collecting monies owed to the organisation

gathering information and its evaluation

legal obligations and framework

maintenance of customer account files

maintenance of security of invoice and other appropriate files

organisation procedures may include:

consideration of customer circumstances

ongoing support and negotiation with customers

referral to external organisations for advice

settlement schedules

recovery costs

suspension of credit facilities.

Legislation may include:

Bankruptcy Act

Bills of Sale and Other Instruments Act

Cheques and Payment Orders Act

consumer credit laws

Corporations Act

Criminal Act

Door to Door Sales Act or equivalent

Evidence Reproduction Act or equivalent

Fair Trading Acts

Magistrates' Court Act

National Consumer Credit Protection Acts

Partnership Act

Privacy Act

Small Debts Court Act or equivalent

Tax Acts and taxation law

Trade Practices Act.

Legal actions may include:

court action:

statement of claim (summons)

statement of liquidated claim

letter of demand.

Appropriate techniques for negotiation include:

setting clear objectives

controlling the meeting or interview

listening and questioning to confirm understanding

offering and expecting commitment

knowing when to compromise

closing with confirmation of agreement.

Unit sector

Credit management

This unit contains employability skills.