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Elements and Performance Criteria

1. Implement an appropriate course of action to recover outstanding debt
   • Account history is reviewed and appropriate recovery action is determined based on account history and debtor response
   • Debtor is promptly advised of possible implications of outstanding debt
   • Agreed payment arrangements are documented accurately
2. Monitor and review effectiveness of recovery action
   • Adherence to payment arrangement is reviewed within a suitable timeframe
   • Where debtor does not adhere to arrangements agreed, the issue is referred to others for appropriate action
   • Internal stakeholders are involved in the review and monitoring process as required
3. Assess account to determine eligibility for write-off
   • The account or invoice is assessed to determine if it is appropriate for write-off
   • Legislation is complied with and recommendations for write-off to be considered are documented for action by authorised personnel
   • Recommendation for closure of the account is considered in accordance with organisation policy, guidelines and procedures

Required Skills

Required skills

welldeveloped communication and interpersonal skills to determine and confirm errant debt status using questioning and active listening as required tactfully negotiate debt recovery options with debtors 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 debtor numeracy and IT skills to perform debt recovery 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 debt and recovery situations provide advice to debt recovery contractors and legal practitioners research and analysis skills for accessing interpreting and managing information and to ensure compliance with relevant legislation and industry development judgement skills for making debt recovery option 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 currant climate of the credit management sector

Evidence Required

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 and common law implement organisation credit policy use good liaison skills to clarify information for all credit accounts and interpersonal skills to achieve positive outcomes apply strong negotiation skills to resolve disputes queries and problems 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 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 organisational policies and procedures relating to debt 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 verbal or written questioning on underpinning knowledge and skills setting and reviewing business simulations or scenarios accessing and validating third party reports
Guidance information for assessment

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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.
Recovery actions may include:	buy/sell debt debtor insurance enforcement of securitisation arrangements legal action liaison with client return of goods third party intervention.
Internal stakeholders may include:	management team other departments within the organisation.
Legislation may include:	Bankruptcy Act Bills of Sale and Other Instruments Act Cheques and Payment Orders Act Corporations Act Criminal Act Door to Door Sales Act or equivalent Evidence Reproduction Act or equivalent Fair Trading Acts Magistrate's Court Act National Consumer Credit Protection Act Partnership Act Personal Property Security Act Privacy Act Small Debts Court Act or equivalent Tax Acts and taxation law Trade Practices Act.
Organisation policy, guidelines and procedures may cover:	accepting and rejecting credit applications applying customer payments to appropriate accounts assistance to be provided to customers on billing and collection problems collecting monies due the organisation fraud awareness gathering information and its evaluation legal obligations and framework maintenance of customer account files maintenance of security of invoice and other appropriate files making billing adjustments to customer accounts overall organisation goals and objectives recovery costs reviewing and adjusting credit limits for established customers setting credit limits or credit lines for applications suspension of credit facilities trading terms and credit limits Organisation procedures may include: consideration of customer circumstances ongoing support and negotiation with customers referral to external organisations for advice settlement schedules.

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