Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to determine the nature and extent of account deficits and to reach a decision on payment methods and appropriate monitoring and controlling of accounts.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.

Application of the unit 

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

Prerequisite units 

Employability skills 

This unit contains employability skills.

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.

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 AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

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

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 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 

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.

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

Competency field 

Co-requisite units