The unit may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Collect and record monies due

1.1. Status of debt is determined in accordance with organisation policy and guidelines and legislative requirements

1.2. Transactions on account are accurately recorded and maintained according to organisation policy and guidelines

1.3. Records of customer contact are accurately maintained

2. Review compliance with terms and conditions

2.1. Customers in breach of terms and conditions are correctly identified and contacted promptly and courteously to bring account within terms

3. Resolve disputed amounts within predetermined parameters

3.1. Background to claim is thoroughly researched based on client's outline of dispute

3.2. Records are thoroughly checked for verification of all case material

3.3. Type of claim is correctly identified and resolved in accordance with organisation policy and procedures

Required skills

communication skills to:

determine and confirm debt status, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform credit related calculations

access and update account records electronically

access web-based information services

literacy skills to read and interpret documentation from a variety of sources and record and consolidate debt related information

research and analysis for accessing, interpreting and managing trading terms and status information and to check claims

interpersonal skills to deal effectively with customers on outstanding repayment matters and to liaise with legal practitioners as required

judgement skills for making credit related decisions

organisational skills, including the ability to plan and sequence work

Required knowledge

credit management business protocols and process

organisational policy, procedures and systems

the credit management sector and related legislation

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 comply with appropriate legislation

know and implement organisation credit policy

liaise with others to clarify information for basic credit accounts

achieve positive outcomes

use data entry and recording systems and credit policies.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the 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 financial records.

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

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Organisation policy and guidelines may cover:

accepting and rejecting credit applications

applying customer payments to appropriate accounts

assistance to customers on billing and collection problems

collecting monies due

gathering information and its evaluation

legal obligations

liaison and information dissemination to internal and external parties

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

reviewing and adjusting credit limits for established customers

setting credit limits or credit lines for applications

development and informal training of credit staff

suspension of credit facilities

trading terms and credit limits.

Legislative requirements may include:

Bankruptcy Act

Bills of Sales and Other Instruments Act

Cheques and Payment Orders Act

contract law

Corporations Act

Door to Door Sales Act or equivalent

Fair Trading Acts

Magistrate's Court Act

National Consumer Credit Protection Act

Partnership Act

Personal Property Securities Act

Privacy Act

Small Debts Court Act or equivalent

Trade Practices Act.

Records may include:

agency file systems

audit records

law enforcement and prosecution agencies

past investigations

records of customer contact that are electronic or paper-based

standards setting organisations

telephone logs.

Contact with customers:

will primarily involve telephone communication.

Unit sector

Credit management

This unit contains employability skills.