Starting November 20, French banks will introduce stricter rules for managing overdrafts, including small amounts under 200 euros. This change comes in response to a study by YouGov France for MoneyVox, which found that one in three French people has been overdrawn at least once in the past year, with 40% expecting to be overdrawn in the coming months. Previously, banks were only required to check a customer's ability to repay for overdrafts of 200 euros or more or for periods longer than a month. From November 20, this requirement will also apply to smaller overdrafts and shorter-term borrowing. Under the new rules, customers seeking an overdraft of 100 or 150 euros may now have their financial situation reviewed before approval. Banks will assess income, financial assets, liabilities, and expenses to determine if the customer can repay the overdraft. However, the level of scrutiny must be proportional to the size and duration of the overdraft. For example, a small overdraft for a few days will not undergo the same detailed analysis as a larger, longer-term one. Additionally, banks may choose not to check a national file of repayment incidents for consumer loans when reviewing small or short-term overdrafts. Existing overdraft approvals from before the new rules will not be automatically re-examined on November 20. However, banks may still refuse to grant even small overdrafts if a customer's financial situation suggests they cannot repay. These changes are based on an European directive from October 18, 2023, aimed at regulating consumer credit contracts. The consumer advocacy group "Together We Choose" supports the regulation, saying it improves transparency and protects people from unfair fees by better managing overdraft access. Approximately 45% of French people who have overdrafts have average balances below 200 euros, highlighting the significance of the new rules. The regulation seeks to ensure that even small overdrafts are managed responsibly, reducing the risk of financial harm to consumers while maintaining access to necessary short-term credit.