Consumer Credit Management

This award 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