Multiple Netizens Report Being Tricked by China Telecom with Real-Name Verification as a Pretext for "Loan Sign-Up", Orange Rent-to-Own as China Telecom's Financial Product! Customer Service: Will Provide Prior Notification

Recently, Weibo netizen @Yangxiaoyou reported being deceived by ChinaTelecom and claimed to have been approached by a representative from China Telecom who requested real-name verification. The representative then asked the user to sign a contract with "Orange Rent-to-Own" as the company's financial product.

After signing the contract, Yangxiaoyou discovered that the original normal monthly bill payment had been converted into a loan repayment plan with Orange Rent-to-Own. The user questioned whether China Telecom was using real-name verification as a pretext to trick users into signing financial contracts.

Public information shows that Orange Rent-to-Own is a wholly-owned subsidiary of Wings Payment, established in 2019. Its business scope includes financing and leasing, property purchase, property residual value processing and maintenance, rental transactions consulting and guaranteeing, and accepting rent guarantees from third-party institutions.

No one has been left unaffected; 5D Investigation found that many netizens have shared similar experiences on social media platforms after searching for "China Telecom's Orange Package" key words.

One Little Red Book user reported being deceived by China Telecom and having an Orange Rent-to-Own loan.

The user claimed that it was a representative from China Telecom who came to their doorstep, saying that the purpose was to upgrade their internet speed and offer a free phone as a reward for long-time users. However, after signing the contract, the user discovered that they had been enrolled in an Orange Rent-to-Own loan.

Another user reported that when they went to purchase a broadband plan last year, the salesperson enthusiastically said "I'll give you a free phone!" and didn't mention Orange Rent-to-Own at all. It wasn't until later, after forgetting to pay their bill, that they received a reminder message from Orange Rent-to-Own for a loan of RMB 1,440.

The user also reported that the salesperson helped them operate their phone and winked at the camera, claiming it was an authorization. However, in reality, they had unknowingly opened a small loan account.

In response to this issue, 5D Investigation as a consumer called China Telecom's customer service. The representative stated that the Orange Rent-to-Own business is owned by Wings Payment and that users will be notified in advance before signing up for the service because it requires authorization.

The customer service also pointed out that Orange Rent-to-Own does require authorization, and if the user fails to make payments on time, there may be negative records uploaded to the People's Bank of China system.

Prior reports have also been exposed by media outlets. The Xinhua News Agency published an article in 2023 titled "Sign up for a phone package, only to fall into the 'net loan' trap?" criticizing the practice of using real-name verification as a pretext to deceive users.

Cover News also reported that after switching to China Telecom's new number and internet plan, one user was forced to make monthly payments instead of regular phone bills.

In previous years, there have been reports of users being enrolled in Orange Rent-to-Own loans without their knowledge. For instance, some users reported that they were tricked into signing up for the service by salespeople who took advantage of their ignorance and failed to disclose the financial implications.