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France to Reclassify Bank Overdrafts as Consumer Credit by 2026, Government Opens Talks on Implementation

The economy minister will meet banks with consumer groups on Tuesday to clarify how the new solvency checks will work.

Overview

  • From 20 November 2026, overdrafts and cash facilities in France will fall under consumer credit rules following an EU directive transposed by ordonnance.
  • Economy Minister Roland Lescure says solvency assessments will be conducted once at account opening, with formal contracts detailing rates and fees.
  • La France insoumise has launched a petition warning of the end of automatic overdrafts, while officials and the banking federation say overdrafts are not banned and do not require per‑use approval.
  • Current credit analyses already applied to overdrafts above €200 will be extended to smaller authorised amounts, with enhanced disclosures on costs.
  • Officials frame the change as consumer protection and a way to reduce fees, as critics warn of tighter access to short‑term liquidity used by many lower‑income households.