The People’s Bank of China announced Wednesday that US$1.3 billion in Chinese credit card debt was at least six months overdue, an increase of 14.4% since the end of 2009, reported the South China Morning Post. The amount overdue is approximately 3.5% of the total outstanding credit card debt, and the delinquency rate is anticipated to climb even as credit card transactions remain at a relatively low level. First quarter transactions amounts to only US$216.7 billion, but this represented a 42.9% annual increase. UnionPay, China’s only domestic interbank card operator, has ramped up investigations into fraud as banks reverse their previously aggressive credit card marketing schemes in recognition of the higher rate of delinquency.
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