As bad loans increase, so do private debt-collection firms

Bogged do in billions in NPL, lenders outsource the recovery function to external agencies

The voice of Li Wen, 28, a debt collector in Shanghai, became hoarse earlier this month, due to hundreds of high-decibel phone calls in the past two months to credit cardholders who defaulted on their repayments.

Li's employer, Shanghai China Promise Ltd, foresees high demand for firms like itself as various types of lenders, including banks, are expected to outsource debt collection due to rising bad loans.