Course Title: Promote understanding of the role and effective use of consumer credit

Part B: Course Detail

Teaching Period: Term1 2016

Course Code: BAFI5224C

Course Title: Promote understanding of the role and effective use of consumer credit

School: 650T Vocational Business Education

Campus: City Campus

Program: C4369 - Certificate IV in Banking Services

Course Contact: Callie Harvey

Course Contact Phone: +61 3 9925 5772

Course Contact Email:

Name and Contact Details of All Other Relevant Staff

Nominal Hours: 40

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites


Course Description

This unit describes the skills and knowledge required to explain the functions and implications of different forms of consumer credit as part of developing the financial skills of clients.

It applies to individuals who use a range of communication styles and techniques to provide comprehensive analysis of information in managerial support or service roles, particularly to clients with minimal financial awareness.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSCRD503 Promote understanding of the role and effective use of consumer credit


1. Identify types of appropriate consumer credit options for clients

Performance Criteria:

1.1 Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries
1.2 Explain types of appropriate consumer credit facilities to clients in plain language
1.3 Provide clients with written supporting documentation and guide them through key aspects of documentation


2. Identify and discuss costs of using credit

Performance Criteria:

2.1 Explain relevant features, terms and conditions of appropriate consumer credit facilities to clients, with impacts and possible risks disclosed in a clear and concise manner
2.2 Explain fees and costs associated with different types of credit options for clients
2.3 Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients


3. Promote effective use of consumer credit

Performance Criteria:

3.1 Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations
3.2 Discuss strategies to minimise fees and cost of credit with clients


4. Provide clients with information regarding credit reference reports

Performance Criteria:

4.1 Explain role of credit reference agencies to clients in plain language
4.2 Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients
4.3 Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required

Learning Outcomes

Details of Learning Activities

A range of learning activities are planned for this course including self-paced and collaborative classroom based activities.

The self-paced activities will be delivered thought various technology platforms and include your contribution to wikis and discussion threads, reflective journals, quizzes and interactive sessions.

The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.
We expect you to participate and contribute in all scheduled learning activities.

Teaching Schedule

Induction Session

Prior to training commencement a program level induction session will be conducted that comprises the following:

  • Program overview and requirements
  • MyRMIT/Blackboard
  • Overview of assessment requirements
  • Pre-Training Review including:
    • Recognition of Prior Learning and Credit Transfers
    • Assessment of current skills and knowledge
  • Competency/Grading Criteria
  • Plagiarism
  • Appeals
  • Extensions
  • Feedback
  • Privacy
  • Submission requirements
  • Resubmission policy
  • Where to get support
  • Student responsibilities 


Please refer to the program shell for further information.


Learning Resources

Prescribed Texts


Other Resources

Overview of Assessment

In order to achieve competency in this unit, you must provide:

Performance Evidence

 Evidence of the ability to:

  • comply with legislative requirements, industry regulations and code of conduct when identifying types of appropriate consumer credit options for clients and providing documentation
  • explain the features, terms and conditions of the appropriate consumer credit facilities to clients, taking into account any special needs
  • provide clients with a detailed analysis of the fees, costs and risks of appropriate consumer credit facilities
  • identify for clients strategies to use appropriate consumer credit facilities effectively
  • explain the consequences of a poor credit reference history to clients

Knowledge Evidence

To complete the unit requirements safely and effectively, you must:

  • explain the effect of the current economic environment on an individual’s credit and debt options
  • explain the advantages and disadvantages of credit
  • describe the principles of lending and credit
  • outline the key differences between secured and unsecured loans
  • describe the key features of relevant legislative requirements, industry regulations and codes of conduct, and how they impact on dealings with clients
  • define the roles and relationships between participants within the Australian financial services industry, including banks and other financial intermediaries
  • describe key features, terms and conditions, and risks of a range of consumer credit facilities, including fees and costs


Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the credit management field of work and include access to:

  • common office equipment, technology and consumables
  • financial services product information
  • relevant software systems and data
  • organisational policy and procedures

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.


Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.

Assessment Tasks

Please refer to the program shell for further information.




Assessment Matrix


Please refer to the program shell for further information.


Other Information

Submission Requirements

You should:

• Ensure that you submit assessments on or before the due date.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of each assessment task is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Callie Harvey, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.

Late Submission Procedures

You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.

If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days. <check links are still current>

More Information:

Form to use:

Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination. <check links are still current>

More Information:;ID=g43abm17hc9w

Form to use:

Resubmissions (VET Programs):

If you are found to be unsuccessful in a Course Assessment Task you will be allowed one resubmission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.

If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

Adjustments to Assessment

In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website: <check link is still current>
More Information:;ID=7usdbki1fjf31

Marking Guide (Competency):

You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.

Marking Guide (Grading)

After achieving competency we then grade your performance in the unit and you will achieve one of the following grades:

Final Grades table:

CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment

Further information regarding the application of the grading criteria will be provided by your teacher.

Course Overview: Access Course Overview