FNSMCA302
Repossess property


Application

This unit describes the skills and knowledge required to liaise with clients (creditors), the client's debtors and third parties, and apply legal requirements and ethical principles in repossessing property.

It applies to individuals who are required to repossess property as part of their role as a mercantile agent within financial services organisations of any size or location.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Plan and prepare repossession process

1.1 Interpret and confirm client’s written instructions and any of their relevant policies and procedures, and align to organisational guidelines and legislative requirements

1.2 Establish location and realisable value of property to be repossessed

2. Negotiate repossession

2.1 Use most appropriate means of communication to establish contact and build rapport with debtor, and clearly communicate reason for repossession

2.2 Canvass terms of debt settlement to negotiate mutually acceptable resolution for client and debtor, where possible

3. Repossess property

3.1 Formulate plan for execution of repossession within legal requirements that also meets client requirements

3.2 Arrange and facilitate repossession ethically on behalf of client

3.3 Engage and oversee third party agents in securing property, where required

4. Formulate report

4.1 Compile accurate report on condition of property and promptly provide to client a full report on repossession activity, disposal result and payment arrangements

4.2 Synthesise information gathered and clearly, concisely document outcomes that can be accessed by all relevant staff

Evidence of Performance

Evidence of the ability to:

compile information on property to be repossessed

interpret and comply with legislative requirements, industry code of conduct and organisational policy and procedures when repossessing property

build and maintain rapport with clients, and liaise and cooperate with debtors and third party agents

negotiate effectively when confronted with problems and difficulties

complete relevant documentation in accordance with industry and organisational requirements and guidelines.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.


Evidence of Knowledge

To complete the unit requirements safely and effectively, the individual must:

describe the negotiation process

outline creditor's obligations underpinning credit management functions, and their relationship to mercantile agents

identify key requirements of relevant state and Commonwealth Acts relating to debt collection and mercantile agents

explain the business principles, financial arrangements and legal obligations of:

sole traders

partnerships

companies

trusts

outline the principles and procedures of:

repossession

notices of intention

authority to repossess

methods of repossession

ethical practices in repossession

post-repossession

describe the principles of association under the Associations Incorporation Reform Act

outline the role, procedures and relevant documentation of the various relevant court jurisdictions and appeals procedures

explain securities and loans principles, specifically factoring, guarantees, indemnity, securities over property, retention of title and liens

describe techniques of search and locating property to be repossessed.


Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the mercantile agents field of work and include access to:

office equipment, technology, software and consumables

relevant legislation and industry codes of practice in the mercantile agent field.

Assessors must satisfy NVR/AQTF assessor requirements.


Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill

Performance Criteria

Description

Reading

1.1

Interprets documentation from a variety of sources and consolidates relevant debtor information

Writing

2.1, 4.1, 4.2

Drafts reports and letters, and completes repossession records

Oral Communication

2.1, 2.2, 3.3

Uses language and concepts appropriate to the audience and purpose to convey and clarify information

Use questioning and active listening to determine and confirm client property repossession requirements

Numeracy

1.2

Accurately analyses, records and stores data in accordance with organisational requirements

Calculates debt status and repossession values

Navigate the world of work

3.1

Takes responsibility for adhering to organisational policy and guidelines relevant to own work context

Recognises and follows explicit and implicit legal and ethical principles and obligations

Interact with others

2.1, 2.2, 3.2

Selects the appropriate form, channel and mode of communication to build rapport, liaise with others and share information

Implements strategies to moderate conflict and resolve disputes

Negotiates with others to achieve agreeable outcomes in potentially contentious situations

Get the work done

1.1, 1.2, 2.2, 3.1-3.3, 4.1, 4.2

Clearly and thoroughly analyses information related to defined tasks and then plans strategies and actions to achieve optimal outcomes within given parameters

Adopts efficient and effective organisational and time management skills to sequence tasks, meet timelines and arrange meetings

Makes decisions and recommendations that lead to best possible outcomes for all stakeholders, including referral to other authorities as necessary

Identifies factors that have the potential to impact on the resolution of an issue and develops options to resolve these when they arise

Uses a range of digitally based technologies and software packages to complete work tasks


Sectors

Mercantile agents