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Evidence Guide: FNSMCA402A - Initiate legal recovery of 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

 

FNSMCA402A - Initiate legal recovery of debts

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

Plan and prepare procedures

  1. Client's written instructions are accurately and clearly interpreted
  2. Debtor's whereabouts is determined and an appropriate plan for contact developed
Client's written instructions are accurately and clearly interpreted

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Debtor's whereabouts is determined and an appropriate plan for contact developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate debt payment and settlements

  1. Most appropriate means of communication is used to establish contact and build rapport with debtor
  2. Decision, with reasons for proceeding or not proceeding or taking further action with debt payment and settlements, is clearly and concisely documented after discussion with management.
Most appropriate means of communication is used to establish contact and build rapport with debtor

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Decision, with reasons for proceeding or not proceeding or taking further action with debt payment and settlements, is clearly and concisely documented after discussion with management.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Initiate legal process

  1. Legal process is initiated, when appropriate, in line with client needs and legal requirements and progressed in accordance with court requirements
  2. Necessary supporting documents are completed correctly and in line with court requirements
  3. Details of debtor are acquired within legal guidelines
Legal process is initiated, when appropriate, in line with client needs and legal requirements and progressed in accordance with court requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Necessary supporting documents are completed correctly and in line with court requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Details of debtor are acquired within legal guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Formulate/report recommendations

  1. Results of process of the information are used to determine a strategy for action
  2. Recommended action is documented and presented to the client
Results of process of the information are used to determine a strategy for action

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommended action is documented and presented to the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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:

accurately compile debtor credit history

build and maintain rapport and trust with clients

interpret and comply with current legislative requirements and general developments in the credit management and mercantile agents field

persuade debtors to come to a satisfactory agreement to repay wherever possible

apply ethical principles and appropriate industry code of conduct in collection activities.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services 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 collection agency systems and documentation.

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 and skills

setting and reviewing simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Required Skills and Knowledge

Required skills

well-developed communication skills to:

determine and confirm client requirements, using questioning and active listening as required

negotiate and resolve disputes

use effective telephone techniques as required for debtor contact

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

literacy skills to:

read and interpret documentation from a variety of sources and recording, gathering and consolidating client information

draft reports and letters

interpret and comply with legal and ethical principles and obligations

well-developed observation and analysis skills to determine appropriate recommendations on debt collection strategies for clients that comply with legal obligations, industry and organisational codes of practice and ethical principles

IT skills for:

accessing and using appropriate software such as word processors, spreadsheets and databases

using internet search systems

using specialist computing systems for a collection agency or credit management contexts

organisational skills, including the ability to plan and sequence work

Required knowledge

all relevant:

State or Territory and Commonwealth Acts

regulatory authorities

court jurisdictions

appeal procedures

business principles and legal obligations underpinning credit management functions and their relationship to agents

business principles, financial arrangements and legal obligations of:

sole traders

partnerships

companies

role of the Australian Securities and Investments Commission (ASIC) in relation to:

businesses

principles of limited liability

insolvency and bankruptcy

principles of association under the Associations Incorporation Act

types and principles and obligations of trusts

costing of contracts

role, procedures for approaching debtors and debtor trends

securities loans and principles:

factoring

guarantees

indemnity

securities over property

retention of title

liens

techniques of searching and locating defaulters

Range Statement

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.

Clients may include:

banks

building societies

credit unions

employers

finance companies

financiers

government agencies

other commercial agents

private companies

solicitors.

Communication may include:

face-to-face meetings

legal service documentation

personal discussion with debtors to provide advice and establish a common sense approach to resolutions

telephone calls

written advice to debtors who have a history of debt and require formal procedures.

Debtors may include:

a business

a company

an association

an individual.

Debt payment and settlements may include:

legal procedures required to elicit payment

verbal undertaking to pay over a specified term

verbal/written arrangements to proceed to pay.

Legal process may include:

applying to a court for writ of possession

contacting a sheriff for serving of legal document

garnishee order

issuing a statement of claim

serving demand or legal notices.