Unit of competency Outline
Date retreived
22/07/2026 10:35 PM AWST
22/07/2026 10:35 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 overdue customer accounts
Manage overdue customer accounts
Unit of competency
National Code
FNSCRD405A
FNSCRD405A
State Code
D4087
D4087
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081101 - Banking And Finance
Original Release Date
29/07/2014
Nominal Hours
25
Description
This unit describes the performance outcomes, skills and knowledge required to correctly initiate and complete the management of customer accounts which have outstanding payments.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. Identify customers requiring collection activity
- 1.1. Organisation overdue account reporting system is regularly monitored for possible collection action
- 1.2. Relevant customer information is accessed and records retrieved
- 1.3. Overdue debtors are reviewed in accordance with organisation policy and procedures and relevant legislation
2. Establish contact with customer and attempt to resolve outstanding payment matters
- 2.1. Proposed communication with customer to collect outstanding payments is determined and confirmed with authorised personnel in the organisation and the correct entity in the outstanding payment matter
- 2.2. Rapport with the customer is established and all communication is in accordance with relevant legislation and company policy and procedures
- 2.3. The purpose of contact is clearly and comprehensively advised to the organisation in accordance with legislative requirements
3. Negotiate resolution of outstanding payments
- 3.1. Debtors are advised of the possibility of legal action and any other implications of not resolving outstanding payments
- 3.2. Appropriate techniques are used to achieve resolution and the outcomes of negotiation are accurately recorded
- 3.3. Further action to be undertaken in relation to outstanding payment matters is diarised
4. Agreement is monitored to ensure adherence
- 4.1. Account is regularly reviewed to ensure that payments are received in accordance with the negotiated arrangement
- 4.2. Breaches of agreement are addressed in accordance with organisation policy and procedures and legislative requirements
- 4.3. Outstanding payment matters are referred to appropriate personnel as required
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 procedures may cover:
assistance to be provided to customers on billing and collection problems
collecting monies owed to the organisation
gathering information and its evaluation
legal obligations and framework
maintenance of customer account files
maintenance of security of invoice and other appropriate files
organisation procedures may include:
consideration of customer circumstances
ongoing support and negotiation with customers
referral to external organisations for advice
settlement schedules
recovery costs
suspension of credit facilities.
Legislation may include:
Bankruptcy Act
Bills of Sale and Other Instruments Act
Cheques and Payment Orders Act
consumer credit laws
Corporations Act
Criminal Act
Door to Door Sales Act or equivalent
Evidence Reproduction Act or equivalent
Fair Trading Acts
Magistrates' Court Act
National Consumer Credit Protection Acts
Partnership Act
Privacy Act
Small Debts Court Act or equivalent
Tax Acts and taxation law
Trade Practices Act.
Legal actions may include:
court action:
statement of claim (summons)
statement of liquidated claim
letter of demand.
Appropriate techniques for negotiation include:
setting clear objectives
controlling the meeting or interview
listening and questioning to confirm understanding
offering and expecting commitment
knowing when to compromise
closing with confirmation of agreement.
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 procedures may cover:
assistance to be provided to customers on billing and collection problems
collecting monies owed to the organisation
gathering information and its evaluation
legal obligations and framework
maintenance of customer account files
maintenance of security of invoice and other appropriate files
organisation procedures may include:
consideration of customer circumstances
ongoing support and negotiation with customers
referral to external organisations for advice
settlement schedules
recovery costs
suspension of credit facilities.
Legislation may include:
Bankruptcy Act
Bills of Sale and Other Instruments Act
Cheques and Payment Orders Act
consumer credit laws
Corporations Act
Criminal Act
Door to Door Sales Act or equivalent
Evidence Reproduction Act or equivalent
Fair Trading Acts
Magistrates' Court Act
National Consumer Credit Protection Acts
Partnership Act
Privacy Act
Small Debts Court Act or equivalent
Tax Acts and taxation law
Trade Practices Act.
Legal actions may include:
court action:
statement of claim (summons)
statement of liquidated claim
letter of demand.
Appropriate techniques for negotiation include:
setting clear objectives
controlling the meeting or interview
listening and questioning to confirm understanding
offering and expecting commitment
knowing when to compromise
closing with confirmation of agreement.
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
implement organisation outstanding payments policy
use liaison skills to clarify information for all credit accounts and interpersonal skills to achieve positive outcomes
apply effective negotiation skills to resolve customer outstanding payment matters
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 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 outstanding payment 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
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge an
setting and reviewing 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
implement organisation outstanding payments policy
use liaison skills to clarify information for all credit accounts and interpersonal skills to achieve positive outcomes
apply effective negotiation skills to resolve customer outstanding payment matters
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 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 outstanding payment 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
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge an
setting and reviewing scenarios
accessing and validating third party reports.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUX09 | FNSCRD405 | Manage overdue customer accounts | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D703 | FNS30311 | Certificate III in Accounts Administration | Qualification |
| D723 | FNS51511 | Diploma of Credit Management | Qualification |
| D705 | FNS40111 | Certificate IV in Credit Management | Qualification |
| D702 | FNS30111 | Certificate III in Financial Services | Qualification |