Provided by Dow Jones Apr 7, 2021 2:18 PM UTC Mr. Navarro wanted to use computer programs to estimate the profitability of debt portfolios. He assembled a 100-person information-technology staff, hired people with front-office experience and integrated the company's various business units so they could handle bigger volumes and different types of debt, according to a 2006 report to investors. To get Sherman off the ground, Mr. Navarro sold 91% of the firm for $40 million to two insurance firms. "They had phenomenal analytics," said Daniel Gross, the former CEO of one of the firms, Enhance Financial Services Inc. Sherman grew quickly as wages for many working and middle-class consumers stagnated and they turned to more widely available credit. Between 2001 and 2020, consumer credit-card debt grew by 37% to $819 billion, according to New York Fed data, and credit-card debt sold by banks increased by 87%, Federal Reserve data show.