This unit may be adapted to meet a range of debt recovery and debt management job roles.

ELEMENT

PERFORMANCE CRITERIA

1. Determine appropriateness of legal recovery

1.1. History of account and previous attempts and recovery of debt is reviewed to determine status

1.2. All documentation is analysed to confirm it is accurate and complete

2. Instigate legal process

2.1. An appropriate jurisdiction and court for debt recovery action is determined

2.2. All necessary documentation is completed accurately and in accordance with organisation policies and procedures

2.3. The timeframe for progress of legal proceedings is estimated

2.4. Reports from service providers are monitored and accurate records to reflect progress of legal action are maintained

3. Implement actions arising from legal process

3.1. Outcomes of legal proceedings in accordance with decision and legislation are recorded

3.2. Where appropriate matters are referred to authorised personnel for further action

3.3. All involved stakeholders are fully informed of the outcome of legal proceedings

Required skills

communication skills to:

determine and confirm outstanding debt situation, using questioning and active listening as required

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 customer

numeracy and IT skills to:

perform debt related calculations

access and update account records electronically

access web based information services

well-developed literacy skills to:

draft documentation for service providers

read and interpret documentation from a variety of sources

complete complex records

research and analysis skills or:

risk assessment

accessing, interpreting and managing information

ensuring compliance with relevant legislation

judgement skills for making debt recovery decisions

organisational skills, including the ability to plan and sequence work

Required knowledge

all current developments in the credit management sector and all relevant organisation policy

current full range of legal options for debt recovery

current credit industry development

relevant legislative requirements

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 implement organisation debt recovery policy

analyse and clarify information for debt recovery actions

accurately prepare debt recovery briefs for legal practitioners

use sound judgement to determine appropriate legal actions that can be taken.

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 policy and procedures and legislative information for 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

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.

Jurisdiction and court for debt recovery (depending on the amount of debt to be recovered) may include:

State and Territory:

County Court

District Court

Family Court

local court

Magistrates Court

Supreme Court

Tribunals

Commonwealth Court

High Court.

Debt recovery action may include:

court action:

statement of claim (summons)

statement of liquidated claim

letter of demand.

Organisation policies and procedures may cover:

gathering information and its evaluation

legal obligations and framework

maintenance of customer account files

minimising risk

referral to appropriate departments or individuals

safe storage of security documentation.

Service providers may be:

barristers

lawyers

mercantile agents

solicitors.

Outcomes of legal proceedings may include:

agreed settlement and conditions

dismissal of the claim

court order:

recovery of assets

garnishee order

bankruptcy

court examination of assets.

Unit sector

Credit management

This unit contains employability skills.