Unit of competency Outline
Date retreived
23/07/2026 2:34 AM AWST
23/07/2026 2:34 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Collect debts
Collect debts
Unit of competency
National Code
FNSMCA301A
FNSMCA301A
State Code
D4255
D4255
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
28/07/2014
Field of Education
091199 - Justice And Law Enforcement, N.e.c.
Original Release Date
28/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to analyse and research information to determine debtor and debt settlement status of individuals or parties, such as companies or associations and negotiating with and collecting debt.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.
Notes
Elements and Performance Criteria
1. Plan and prepare procedures
- 1.1. Client's written instructions are accurately and clearly interpreted
- 1.2. Debtor file comments are reviewed to enable initial action in line with organisation policies and procedures
2. Assess debtor
- 2.1. Creditworthiness of debtor or parties in debt is established through the compilation of a valid and relevant credit history to determine appropriate and cost-effective recovery action options
- 2.2. Information on debtor is cross-referenced for verification when necessary by file or document search and future action determined in line with client capability
3. Negotiate debt payment/settlement within defined parameters
- 3.1. Most appropriate means of communication is used to establish contact and build rapport with debtor
- 3.2. Debt settlement is achieved in line with client needs through consultation with debtor, using mutually satisfactory negotiation techniques and appropriate industry codes of conduct
- 3.3. Agreement to procedure for payment or settlement of debt is confirmed, within organisation policy and guidelines and is comprehensively recorded
- 3.4. Decision is documented giving reasons for proceeding or not proceeding or taking further action, after discussion with management
- 3.5. Decision to refer debt for legal action is undertaken, if necessary, in line with organisation policy and guidelines
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.
Clients may include:
banks
building societies
credit unions
employers
managers
supervisors
team leaders
finance companies
financiers
government agencies
other commercial agents
private companies
solicitors.
Organisation policies and procedures may include:
organisation mission statements
complying with Privacy Act legislation
gathering information and its evaluation
legal obligations and framework
overall organisation goals and objectives
trading terms and credit limits.
Creditworthiness may include:
a report from a bureau using industry specific information such as trends
appraisal using credit scoring or other system
history of debtor from own database
reports as to creditworthiness from references
reports from a credit reporting agency.
Parties in debt may include:
a business
a company
an association
an individual.
Means of communication may include:
legal service documentation
personal discussions with debtors to provide advice and establish a common sense approach to resolution
telephone
written advice to debtors who have a history of debt and require formal procedures.
Payment or settlement of debt may include:
legal procedures required to elicit payment
verbal or written arrangements to proceed to pay
verbal undertaking to pay over a specified term.
Legal action may include:
applying to court for writ of possession
contacting a sheriff for serving of legal document
garnishee order
issuing a statement of claim
serving demand or legal notices.
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.
Clients may include:
banks
building societies
credit unions
employers
managers
supervisors
team leaders
finance companies
financiers
government agencies
other commercial agents
private companies
solicitors.
Organisation policies and procedures may include:
organisation mission statements
complying with Privacy Act legislation
gathering information and its evaluation
legal obligations and framework
overall organisation goals and objectives
trading terms and credit limits.
Creditworthiness may include:
a report from a bureau using industry specific information such as trends
appraisal using credit scoring or other system
history of debtor from own database
reports as to creditworthiness from references
reports from a credit reporting agency.
Parties in debt may include:
a business
a company
an association
an individual.
Means of communication may include:
legal service documentation
personal discussions with debtors to provide advice and establish a common sense approach to resolution
telephone
written advice to debtors who have a history of debt and require formal procedures.
Payment or settlement of debt may include:
legal procedures required to elicit payment
verbal or written arrangements to proceed to pay
verbal undertaking to pay over a specified term.
Legal action may include:
applying to court for writ of possession
contacting a sheriff for serving of legal document
garnishee order
issuing a statement of claim
serving demand or legal notices.
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:
accurately compile debtors credit history
build and maintain rapport and trust with clients
interpret and comply with current legislative requirements and general developments in the credit management and mercantile agents field
successfully persuade debtors to come to a satisfactory agreement to repay
apply ethical principles and appropriate industry code of conduct in collection activities.
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 organisation policies and procedures.
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 or role plays
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
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:
accurately compile debtors credit history
build and maintain rapport and trust with clients
interpret and comply with current legislative requirements and general developments in the credit management and mercantile agents field
successfully persuade debtors to come to a satisfactory agreement to repay
apply ethical principles and appropriate industry code of conduct in collection activities.
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 organisation policies and procedures.
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 or role plays
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9875 | FNSMERC301B | Collect debts | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS22 | FNSMCA301 | Collect debts | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S696 | FNS30410 | Certificate III in Mercantile Agents | Qualification |