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).

Interview Answer

3 Answers


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

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

one third of original payers i.e. 33.33 payers, assuming that there are 100 payers in all.

cpaone on Sep 21, 2011

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