The recognised standard

Unit: Consumer Credit Management

Summary

This unit provides an understanding of the concepts, processes and techniques that underpin best practice within consumer credit management.

Syllabus Topics

1.      Role and effect of consumer credit (15%)

  • Purpose of controlling credit
  • Differentiation of consumer markets compared with export and trade
  • Effect on costs, profits & liquidity

2.      Organisation of the credit function (25%)

  • Management function & personnel
  • Conflict: credit and other departments
  • Customer service and credit
  • Credit policy and procedures
  • Measurement of credit performance and targets

3.      Marketing of consumer credit (15%)

  • Promotion and sale of credit as a product
  • Marketing strategies and regulations in consumer credit
  • Consumer credit products

4.      Credit risk control (20%)

  • Customer credit risk
  • Sources of information
  • Risk control via assessment and via payment
  • Financing credit

5.      Credit documents and systems (10%)

  • Purpose and features of consumer credit documents
  • Master files
  • Credit scoring and predictive dialling

6.      Collections methods and recovery methods (15%)

  • Methods and techniques: letters and telephone
  • Non-payment and disputes
  • Debt recovery
  • Third Party debt advisors
  • Tracing absconders