My dad went to a telecom service hall yesterday and saw an ad for a “0-yuan phone purchase.” He almost signed up. The salesperson said the phone was free and that he only needed to pay the monthly plan fee.

Good thing he didn’t rush into it. Did your dad ask whether he would also have to sign a separate loan agreement?

A loan? Didn’t they say the phone was free? How could there be a loan too?

That’s how some “0-yuan phone purchase” offers work. You don’t have to pay for the phone upfront, but you still have to sign a consumer loan agreement, with the loan under your own name.

Then if you don’t make the repayments on time, couldn’t that affect your credit record? I’m sure my dad had no idea there was more to it.

That’s what led to many of the complaints. Some service outlets didn’t clearly explain these details, and customers only later discovered that they had taken out loans. The country’s three major telecom operators have now suspended new business of this kind.

So does that mean regular contract phone plans aren’t available either? My dad just wanted to switch to a more affordable phone.

Not at all. Contract phone purchases involving an advance payment of service fees haven’t been halted. Tell your uncle to read the contract carefully first—especially to check whether there’s a loan—before deciding whether to sign up.

Okay, I’ll remind him tonight. Good thing he didn’t sign right away yesterday; otherwise, he might not even have known that he had taken out a loan.