Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to correctly identify outstanding debts, negotiate with customers and ascertain means of recovery using recovery actions in line with relevant credit policy. This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body. |
Application of the Unit
Application of the unit |
This unit may apply to debt recovery management in all financial and other industry sectors. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Implement an appropriate course of action to recover outstanding debt |
1.1. Account history is reviewed and appropriate recovery action is determined based on account history and debtor response 1.2. Debtor is promptly advised of possible implications of outstanding debt 1.3. Agreed payment arrangements are documented accurately |
2. Monitor and review effectiveness of recovery action |
2.1. Adherence to payment arrangement is reviewed within a suitable timeframe 2.2. Where debtor does not adhere to arrangements agreed, the issue is referred to others for appropriate action 2.3. Internal stakeholders are involved in the review and monitoring process as required |
3. Assess account to determine eligibility for write-off |
3.1. The account or invoice is assessed to determine if it is appropriate for write-off 3.2. Legislation is complied with and recommendations for write-off to be considered are documented for action by authorised personnel 3.3. Recommendation for closure of the account is considered in accordance with organisation policy , guidelines and procedures |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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Recovery actions may include: |
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Internal stakeholders may include: |
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Legislation may include: |
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Organisation policy , guidelines and procedures may cover: |
Organisation procedures may include:
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Unit Sector(s)
Unit sector |
Credit management |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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