When in China, keep an eye on your credit card bill! A Chinese man was recently hit with a 10,000 Yuan bill after ignoring a six Mao overdraft on his credit card for six years.

How is that even possible? The man, surnamed Yu, stopped using his credit card back in 2009 and ignored the six Mao overdraft on the card. Yu had graduated from university around that time and had started work. He changed his phone number and therefore never received any notices from his old bank about the card. The six Mao seemed like nothing to worry about, but it ended up causing a ton of trouble!

Six years later, Yu went to the bank to apply for a loan to purchase a house and found out that he had been blacklisted by the People's Bank of China. Yu learned that his 6 Mao credit card bill had racked up overdue interest fees, late fees, and annual overdraft fees totaling 9,267.2 Yuan. The bill was so high because of compounded interest on all of the fees- the longer a fee is overdue, the higher it is.

Yu was able to settle with the People's Bank of China and he agreed to pay the bank a settlement of 500 Yuan. In return, bank cleared Yu's bad financial record from its credit system.

Source: boxun.com

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Keywords: China overdraft China credit card People's Bank of China