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If a student can't repay on time, the platform will tell the friends and family about the loan."If he can't pay, his parents can," the general manager of an online lending company said.

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One of the simplest and most direct methods just involves sending text messages and calling the borrowers.

Mr Yang works for a debt collecting company in Guangzhou and explained that the most common debt collection methods involved phoning or visiting the borrowers and taking them to court.

"This is just a courtesy to the borrower," Zhao said.

If calling them doesn't work, the debt collectors then find the borrower's home address.

"Usually they pay up when we get to the fourth step which is where we contact the roommates," the manager said.

Last modified 07-Nov-2017 22:41