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Evidence Guide: FNSCRD503 - Promote understanding of the role and effective use of consumer credit

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSCRD503 - Promote understanding of the role and effective use of consumer credit

What evidence can you provide to prove your understanding of each of the following citeria?

Identify types of appropriate consumer credit options for clients

  1. Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries
  2. Explain types of appropriate consumer credit facilities to clients in plain language
  3. Provide clients with written supporting documentation and guide them through key aspects of documentation
Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain types of appropriate consumer credit facilities to clients in plain language

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide clients with written supporting documentation and guide them through key aspects of documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and discuss costs of using credit

  1. Explain relevant features, terms and conditions of appropriate consumer credit facilities to clients, with impacts and possible risks disclosed in a clear and concise manner
  2. Explain fees and costs associated with different types of credit options for clients
  3. Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients
Explain relevant features, terms and conditions of appropriate consumer credit facilities to clients, with impacts and possible risks disclosed in a clear and concise manner

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain fees and costs associated with different types of credit options for clients

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Promote effective use of consumer credit

  1. Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations
  2. Discuss strategies to minimise fees and cost of credit with clients
Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss strategies to minimise fees and cost of credit with clients

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide clients with information regarding credit reference reports

  1. Explain role of credit reference agencies to clients in plain language
  2. Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients
  3. Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required
Explain role of credit reference agencies to clients in plain language

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Identify types of appropriate consumer credit options for clients

1.1 Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries

1.2 Explain types of appropriate consumer credit facilities to clients in plain language

1.3 Provide clients with written supporting documentation and guide them through key aspects of documentation

2. Identify and discuss costs of using credit

2.1 Explain relevant features, terms and conditions of appropriate consumer credit facilities to clients, with impacts and possible risks disclosed in a clear and concise manner

2.2 Explain fees and costs associated with different types of credit options for clients

2.3 Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients

3. Promote effective use of consumer credit

3.1 Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations

3.2 Discuss strategies to minimise fees and cost of credit with clients

4. Provide clients with information regarding credit reference reports

4.1 Explain role of credit reference agencies to clients in plain language

4.2 Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients

4.3 Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Identify types of appropriate consumer credit options for clients

1.1 Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries

1.2 Explain types of appropriate consumer credit facilities to clients in plain language

1.3 Provide clients with written supporting documentation and guide them through key aspects of documentation

2. Identify and discuss costs of using credit

2.1 Explain relevant features, terms and conditions of appropriate consumer credit facilities to clients, with impacts and possible risks disclosed in a clear and concise manner

2.2 Explain fees and costs associated with different types of credit options for clients

2.3 Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients

3. Promote effective use of consumer credit

3.1 Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations

3.2 Discuss strategies to minimise fees and cost of credit with clients

4. Provide clients with information regarding credit reference reports

4.1 Explain role of credit reference agencies to clients in plain language

4.2 Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients

4.3 Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required

Evidence of the ability to:

comply with legislative requirements, industry regulations and code of conduct when identifying types of appropriate consumer credit options for clients and providing documentation

explain the features, terms and conditions of the appropriate consumer credit facilities to clients, taking into account any special needs

provide clients with a detailed analysis of the fees, costs and risks of appropriate consumer credit facilities

identify for clients strategies to use appropriate consumer credit facilities effectively

explain the consequences of a poor credit reference history to clients.

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 effect of the current economic environment on an individual’s credit and debt options

explain the advantages and disadvantages of credit

describe the principles of lending and credit

outline the key differences between secured and unsecured loans

describe the key features of relevant legislative requirements, industry regulations and codes of conduct, and how they impact on dealings with clients

define the roles and relationships between participants within the Australian financial services industry, including banks and other financial intermediaries

describe key features, terms and conditions, and risks of a range of consumer credit facilities, including fees and costs.