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Evidence Guide: FNSCRD403A - Manage and recover bad and doubtful debts

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSCRD403A - Manage and recover bad and doubtful debts

What evidence can you provide to prove your understanding of each of the following citeria?

Implement an appropriate course of action to recover outstanding debt

  1. Account history is reviewed and appropriate recovery action is determined based on account history and debtor response
  2. Debtor is promptly advised of possible implications of outstanding debt
  3. Agreed payment arrangements are documented accurately
Account history is reviewed and appropriate recovery action is determined based on account history and debtor response

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Debtor is promptly advised of possible implications of outstanding debt

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Agreed payment arrangements are documented accurately

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor and review effectiveness of recovery action

  1. Adherence to payment arrangement is reviewed within a suitable timeframe
  2. Where debtor does not adhere to arrangements agreed, the issue is referred to others for appropriate action
  3. Internal stakeholders are involved in the review and monitoring process as required
Adherence to payment arrangement is reviewed within a suitable timeframe

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Where debtor does not adhere to arrangements agreed, the issue is referred to others for appropriate action

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Internal stakeholders are involved in the review and monitoring process as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess account to determine eligibility for write-off

  1. The account or invoice is assessed to determine if it is appropriate for write-off
  2. Legislation is complied with and recommendations for write-off to be considered are documented for action by authorised personnel
  3. Recommendation for closure of the account is considered in accordance with organisation policy, guidelines and procedures
The account or invoice is assessed to determine if it is appropriate for write-off

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Legislation is complied with and recommendations for write-off to be considered are documented for action by authorised personnel

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommendation for closure of the account is considered in accordance with organisation policy, guidelines and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

Required skills

well-developed 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

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.