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Evidence Guide: FNSMCA301 - Collect debts

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

 

FNSMCA301 - Collect debts

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

Plan and prepare initial contact

  1. Interpret and confirm client’s written instructions and any of their relevant policy and procedures
  2. 1.2 Review comments on debtor's file to enable initial action in line with own organisation’s policy and procedures, and legislative requirements
Interpret and confirm client’s written instructions and any of their relevant policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

1.2 Review comments on debtor's file to enable initial action in line with own organisation’s policy and procedures, and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess debtor

  1. Establish credit worthiness of debtor through compilation of valid and relevant credit history
  2. Cross-reference information on debtor for verification, when necessary, by file or document search
  3. 2.3 Determine appropriate and cost-effective recovery action options based on debtor's verified credit worthiness
Establish credit worthiness of debtor through compilation of valid and relevant credit history

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Cross-reference information on debtor for verification, when necessary, by file or document search

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

2.3 Determine appropriate and cost-effective recovery action options based on debtor's verified credit worthiness

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate debt payment or settlement within defined parameters

  1. Use appropriate means of communication to establish contact and build rapport with debtor
  2. Develop debt settlement proposal that attempts mutual satisfaction for client and debtor, applying negotiation techniques, organisational guidelines and appropriate industry codes of conduct
  3. Discuss debt settlement proposal with management and document reasons for proceeding or not proceeding, or taking further action
  4. Confirm and record debtor and creditor agreement, and procedures for debt settlement
  5. Make decision to refer debt for legal action, if necessary, in line with organisational policy and procedures
Use appropriate means of communication to establish contact and build rapport with debtor

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop debt settlement proposal that attempts mutual satisfaction for client and debtor, applying negotiation techniques, organisational guidelines and appropriate industry codes of conduct

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss debt settlement proposal with management and document reasons for proceeding or not proceeding, or taking further action

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Confirm and record debtor and creditor agreement, and procedures for debt settlement

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Make decision to refer debt for legal action, if necessary, in line with organisational policy and procedures

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. Plan and prepare initial contact

1.1 Interpret and confirm client’s written instructions and any of their relevant policy and procedures

1.2 Review comments on debtor's file to enable initial action in line with own organisation’s policy and procedures, and legislative requirements

2. Assess debtor

2.1 Establish credit worthiness of debtor through compilation of valid and relevant credit history

2.2 Cross-reference information on debtor for verification, when necessary, by file or document search

2.3 Determine appropriate and cost-effective recovery action options based on debtor's verified credit worthiness

3. Negotiate debt payment or settlement within defined parameters

3.1 Use appropriate means of communication to establish contact and build rapport with debtor

3.2 Develop debt settlement proposal that attempts mutual satisfaction for client and debtor, applying negotiation techniques, organisational guidelines and appropriate industry codes of conduct

3.3 Discuss debt settlement proposal with management and document reasons for proceeding or not proceeding, or taking further action

3.4 Confirm and record debtor and creditor agreement, and procedures for debt settlement

3.5 Make decision to refer debt for legal action, if necessary, in line with organisational policy and procedures

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. Plan and prepare initial contact

1.1 Interpret and confirm client’s written instructions and any of their relevant policy and procedures

1.2 Review comments on debtor's file to enable initial action in line with own organisation’s policy and procedures, and legislative requirements

2. Assess debtor

2.1 Establish credit worthiness of debtor through compilation of valid and relevant credit history

2.2 Cross-reference information on debtor for verification, when necessary, by file or document search

2.3 Determine appropriate and cost-effective recovery action options based on debtor's verified credit worthiness

3. Negotiate debt payment or settlement within defined parameters

3.1 Use appropriate means of communication to establish contact and build rapport with debtor

3.2 Develop debt settlement proposal that attempts mutual satisfaction for client and debtor, applying negotiation techniques, organisational guidelines and appropriate industry codes of conduct

3.3 Discuss debt settlement proposal with management and document reasons for proceeding or not proceeding, or taking further action

3.4 Confirm and record debtor and creditor agreement, and procedures for debt settlement

3.5 Make decision to refer debt for legal action, if necessary, in line with organisational policy and procedures

Evidence of the ability to:

compile debtor's credit history

assess and establish debtor's credit worthiness

interpret and comply with legislative requirements, industry code of conduct and organisational policy and procedures relevant to debt collection

negotiate effectively to come to a satisfactory agreement and gain commitment from debtor to settle debt

complete relevant documentation in accordance with industry and organisational requirements and guidelines.

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:

describe the negotiation process

outline and describe the basic business structure, financial arrangements and legal obligations of sole trader, partnership trusts and corporate businesses

provide basic information on securities, loans and principals, factoring, guarantees, indemnity, securities over property, retention of title and liens

outline creditor's obligations underpinning credit management functions and their relationship to mercantile agents

identify relevant state or territory and Commonwealth Acts and regulatory authorities regarding debt collection and mercantile agents

describe the role, procedures and relevant documentation of the various court jurisdictions and appeals procedures involved in debt collection processes.