After 5 years, they deleted everything 2 weeks after the first payment failure.
Sure it was the cheapest VPS. But still, you don't just delete your customers' data.
I was away from emails and the service during those two weeks. As far as I can tell it might have been some race condition in their payement processing system. They couldn't figure it out. They had no backup. They refused to reinstate the service anew to restore my own backup.
It looks like you had your own backup, which is always a good idea, hopefully you were able to restore your data elsewhere.
Strange. I've been at least eight days late with a VPS payment at Hetzner (3 euro) and the server is still up.
Also it is smart to have the threshold set to at least 1 cent, because this way you dont ask someone to pay you is supposed to pay you a fraction of a cent due to some rounding error. There are those stories where a company sends you a registered mail, where they ask you to repay a fraction of a cent - what is impossible. Also the cost of the letter (snail mail) made it not worth it. Even if you get an email that is "free" you cant pay 0.0001 cent. I mean you can pay a whole one and then ask to get 0.999 back - the time required by the bookkeeper to process it, then pay it (probably with a fee) is not worth it.
Hetzner deleted my server just one week after my payment due date. My credit card failed the payment for some reason. I didn’t notice this because I was ill with Covid. They sent me one email (or at least, I received only one email) as a warning. I only realized the server was gone when my services stopped working. I’m not sure if such a short warning time is common practice among hosting companies, or if it’s unique to Hetzner.