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France Moves to Clarify EU Overdraft Rules After Bercy Meeting

The economy minister pledged co‑writing of application rules with banks alongside consumer advocates to clarify how solvency checks will apply to small, short‑term overdrafts.

Overview

  • Following a meeting at Bercy, the government reiterated that overdrafts will not be banned and that the new regime will apply only to new authorisations from 20 November 2026.
  • The rules stem from a 2023 EU directive that brings small overdrafts under consumer‑credit protections, requiring solvency assessments for facilities under €200 and shorter than one month.
  • Existing authorised overdrafts are grandfathered, while future overdrafts will be counted within standard debt calculations, which could tighten eligibility for other loans.
  • The French Banking Federation said the session aligned everyone on the key points but noted that several operational details still need clarification.
  • Banks warn of added compliance burdens and lower fee income, while consumer groups seek protections that reduce abusive charges as authorities draft the implementing texts with ACPR and the Treasury.