Required skills

communication skills to

determine and confirm debt and debt settlement requirements using questioning and active listening as required

negotiate and use dispute resolution techniques and processes

liaise with others share information listen and understand

use language and concepts appropriate to cultural differences

numeracy skills to

accurately analyse record and store data in accordance with organisational requirements

calculate debt status and settlement payments

literacy skills to

read and interpret documentation from a variety of sources and recording gathering and consolidating credit application information

draft reports and letters and complete credit application records

develop and implement debt collection processes and underpinning legal obligations

research skills using current techniques of searching and locating defaulters

IT skills for accessing and using appropriate software such as spreadsheets and databases and the internet in a collection agency or credit management context

organisational skills including the ability to plan and sequence work

Required knowledge

basic business principles financial arrangements and legal obligations of sole trader partnership and organisation businesses

basic information on securities loans and principles factoring guarantees indemnity securities over property retention of title and liens

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

relevant State or Territory and Commonwealth Acts and regulatory authorities regarding debt collection

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

business 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 and relevant documentation of the various court jurisdictions and appeals procedures involved in debt collection processes

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 debtors 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

successfully persuade debtors to come to a satisfactory agreement to repay

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 organisation policies and procedures

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

evaluating samples of work

accessing and validating third party reports

Guidance information for assessment

Clients may include:

Organisation policies and procedures may include:

Creditworthiness may include:

Parties in debt may include:

Means of communication may include:

Payment or settlement of debt may include:

Legal action may include: