Capital One Interview Question: CASE: Recovering Written-off ... | Glassdoor

## Interview Question

Senior Operations Analyst Interview(Student Candidate) Richmond, VA

# CASE: Recovering Written-off Past Due Balances 6 months

past due, avg \$2000 balance, 15% pay in full, profitable? If introduce settlement option for 60% of balance, 10% pay settlement but 5% of them dont pay in full, better choice? With new model, now 9% pay in full, but with settlement option now 10% take settlement but a third of original payers dont pay in full, better? etc. (poorly worded and confusing case. unhelpful vague interviewer, arggg, cost me the job).

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make sure to clearly differentiate and calculate the "no settlement" and "settlement" scenarios in each variation, and understand the relationships between the two.

Interview Candidate on Aug 31, 2011
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Hi Sir,
Can you explain the no settlement/settlement scenario for one of variations. I am not able to understand the question.

Assume 100 people own a loan
For 1st Variation - Avg 2000\$ balance, 15% pay in full
Payment Received = 15*2000 = 30000\$
Loss = 85*2000 = 170000\$
How can i tell if its profitable (compare to what) with this info ?

For 2nd variation
With Settlement - 60% of balance = 2000*0.6 = 1200\$
Payment = 10*1200 = 12000 \$
5% don't pay in full ? Does it mean they pay some % of settlement amount (1200) ?
Also for no settlement option for this variation, whats the data ?

For new model (is it same as 2nd variation - 60% of balance?)
without settlement - 9 % pay in full = 9*2000 = 18000
with settlement - 10% take settlement = 10*1200 = 12000
3rd of original payers = 3rd of 9% = 3% don't pay in full (what does this mean, do they pay less than 1200\$ for each of them or zero dollars)

If you could guide with one of the variations, i would be able to understand the problem.

Aspirant on Sep 12, 2011
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one third of original payers i.e. 33.33 payers, assuming that there are 100 payers in all.

cpaone on Sep 21, 2011