Unit of competency Outline
Date retreived
22/07/2026 9:15 PM AWST
22/07/2026 9:15 PM 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.
Manage and recover bad and doubtful debts
Manage and recover bad and doubtful debts
Unit of competency
National Code
FNSCRD403A
FNSCRD403A
State Code
D4085
D4085
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
080101 - Accounting
Original Release Date
29/07/2014
Nominal Hours
30
Description
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.
Notes
Elements and 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
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.
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.
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
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
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ74 | FNSCRD403 | Manage and recover bad and doubtful debts | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D705 | FNS40111 | Certificate IV in Credit Management | Qualification |
| D715 | FNS41811 | Certificate IV in Financial Services | Qualification |
| S704 | FNS40510 | Certificate IV in Personal Injury Management (Underwriting) | Qualification |