Overview
- From 20 November 2026, overdrafts and cash facilities will be treated as consumer credit, requiring solvency assessments and formal contracts that spell out rates, fees and conditions.
- The economy minister will convene banks and consumer groups on Tuesday to work on implementing texts, stating overdrafts are not banned and that a credit analysis will be performed once at account opening, including for amounts under €200.
- La France insoumise launched a petition against the reform and reported more than 15,000 signatures within hours, arguing it ends automatic overdrafts and will hurt low‑income households.
- Following an Oct. 28 confirmation by the Banque de France, the banking federation clarified that customers will not have to request authorization each time, though banks must formalize overdraft agreements.
- Overdrafts are widely used in France, with studies indicating roughly 15–22% of customers use them monthly and about half do so at least once a year, fueling concerns over access to short‑term liquidity.